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EUR/GBP Surges Through Week's Highs on Bailey

GBP
  • GBP extends slippage following the Bailey comments, with GBP/USD narrowing in on the overnight lows at 1.2013. GBP weakness similarly expressed against the EUR, with the cross north of yesterday's and Friday's highs to open next key resistance at 0.8887.
  • Currencies moving in tandem with rate expectations here as SONIA futures rally on the back of Bailey's lack of commitment to further tightening.
  • 1.2000 could draw interest in GBP/USD any further weakness, marking the most sizeable option expiry for today's cut: $482mln set to roll-off at that handle.

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