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EUR/GBP Backtracks to Fresh Lows on Solid PMI

GBP
  • GBP/USD through earlier highs and taking out yesterday's 1.2747 - the leg higher opens the YTD high at 1.2786 and December recovery high of 1.2827. Clearance here would conclude the consolidation pattern and make for a resumption of the uptrend drawn off the late October lows.
  • EUR/GBP reverses in tandem, making for five negative sessions in the past six and 0.8524 as the next downside target. This drags spot away from the most sizeable strike in the cross for today's NY cut: E459mln rolling off at GBP0.8545. BoE pricing firmed slightly on that PMI print, with May meeting rate cut pricing pared back to ~12bps and reducing the odds of a 25bps cut to below 50%.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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