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ECB source story pushing up expectations......>

FOREX
FOREX: ECB source story pushing up expectations boosts the EUR
- Bloomberg citing an ECB story that said some members are said to see end-2019
rate hike as too late, boosted the EUR across the board. EUR/USD squeezed to
$1.1675 on extended react, EURJPY stalled ahead of Y129.00.
- Prior to this FX markets slowed as the US Independence Day holiday kicked in,
denting price action. SEK outperformed for the second consecutive session after
the central bank raised inflation forecasts yesterday. EURSEK moved through the
100-dma to Sek10.2243.
- GBPUSD consolidated above $1.3200 for the balance of the session, underpinned
from strong UK Services PMI data (highest reading since October). Markets now
pricing an August hike edged higher (72% vs 64%) according to MNI Pinch. EURGBP
flirts with the 200-dma (Gbp0.8822) and will be monitored on a closing basis.
- Commodity based FX largely traded flat to hold in the middle of narrow ranges.
- Focus tomorrow on BoE Carney speech in Newcastle at 1000GMT, ADP Employment
(1230GMT), ISM Non-mfg (1400GMT) and the FOMC minutes at 1800GMT with risk the
Fed could scale back its hawkish tone.

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