Brexit Comment Continues to Dictate...........>

FOREX: Brexit Comment Continues to Dictate Sterling Action.

- Refreshed USD strength during the European morning countered the overnight

correction, which had seen EUR/USD extend its recovery off Tuesday's low of

$1.1530 to $1.1608, saw rate pressed back down to $1.1543 before it recovered

toward $1.1600 ahead of the NY open. Part of this recovery was aided by fresh

downside pressure on sterling, which saw cable trade to an extended low of

$1.2786 as EUR/GBP rallied to Gbp0.9052. However, Brexit comment carried by one

newswire that British and German governments have abandoned key Brexit demands,

potentially easing the path for Britain to strike a deal with the EU, saw cable

spike to $1.2983, dropped EUR/GBP to Gbp0.8956. Cable move drove EUR/USD up to

$1.1640 where it ran into reported resistance, with profit take supply able to

squeeze it back toward $1.1600. German Govt spokesman comment that German Govt

position on Brexit remains unchanged dropped cable to $1.2873 but was seen

settling above $1.2900 at the Europe close. 

- USDJPY consolidated earlier gains to Y111.76 as it settled either side of

Y111.50. If rate retains buoyant tone seen targeting the Aug29 high at Y111.83.