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ANZ notes that "sterling failed to rally in...>

CABLE
CABLE: ANZ notes that "sterling failed to rally in response to the Bank of
England's decision to raise the bank rate 25bps to 0.75%," suggesting that "an
extended dip towards 1.25 vs USD cannot be ruled out, near term. Prime Minister
May is keen to build support for the UK government's plan for its future
relationship with the EU ahead of key meetings with heads of state in September
and, most importantly, the October EU Summit. Sterling is fundamentally cheap
and the economy is holding up reasonably well. But uncertainty is dominating in
thin summer markets. Progress on Brexit is needed to encourage buying interest
in the pound, which remains rudderless for now."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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