Dollar drop puts brakes on Cable downtrend....>

FOREX: Dollar drop puts brakes on Cable downtrend

- A firm bout of dollar sales following the London fix but the brakes on the

well-established GBP/USD downtrend posted since the early June high. The USD

reversal at the London close spared the blushes of many pairs, with GBP, AUD and

CAD the main beneficiaries.

- JPY was the poorest performer across G10 Tuesday, with the lack of follow

through in equity weakness helping pressure haven FX. This, allied with

month-end signals that suggesting JPY sales, helped GBP/JPY recover above the

50-dma at 133.33.

- COVID cases remain a focus in the US, with evidence that further states are to

quarantine incoming visitors - Massachusetts being the latest.

- Japan's Tankan survey, final European manufacturing PMIs and German

unemployment data  are the focus for the Asia-Pac/European sessions before US

ADP employment change and June Manufacturing ISM from the States. Fed minutes

round off the day, but speeches are also due from ECB's Panetta & de Cos, BoE's

Haskel and Fed's Evans.