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EUR/GBP Accelerates on Break of Key Levels

GBP
  • Fresh pullback lows printed in GBP in recent trade, with EUR/GBP extending outperformance to trade fresh multi-month highs. No new news to pin the move on, and no parallel shift in BoE rate expectations either - with just over 50bps of rate cuts priced by year-end.
  • EUR/GBP's shift higher coincides with the break confirmed close and break above the late March highs at the Friday close as well as the 200-dma at 0.8607, with momentum possibly picking up on the slippage through the 1.16 handle in GBP/EUR also - a cross closely watched by UK importers/exporters.
  • As mentioned above, it's a key week for BoE speakers - and markets may be pre-positioning for further policy and economic uncertainty.

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