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EU comments on Article50 extension Tuesday....>

CABLE
MNI (London)
CABLE: EU comments on Article50 extension Tuesday provided cable the lift that
took it above $1.3300 and on to $1.3311 before momentum faded. USD strength in
early NY provided a counter and pressed rate back down to $1.3241 before it
edged back to $1.3288 then settled around $1.3270 into the close. Early Asia
consolidated Tuesday's moves as it held a tight range around $1.3270 before
USD/JPY demand at the Tokyo fix, along with general USD short covering, pressed
cable down to $1.3247 into Europe. 
- Brexit headlines keep market cautious but attention will be on today's release
of UK Inflation data at 0930GMT(market medians CPI 0.4%mm, 1.8%yy; Core 1.9%yy)
ahead of US FOMC announcement at 1800GMT(no rate change widely expected, focus
on Powell press conference for rate path via dots). 
- Market retains an underlying optimistic outcome for Brexit with any negative
headline react quickly finding interested buyers. Focus on PM May's request for
an Article50 extension and the EU's response.  
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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