FOMC minutes balanced, limited react. GBP.....>

FOREX: FOMC minutes balanced, limited react. GBP pares BoE Carney inspired gains

- FOMC minutes came in balanced with limited react. Most Fed officials said

gradual hikes are needed amid a strong economy, it also noted of intensified

risks around trade policy.

- Despite hawkish remarks from BOE Governor Carney that the Q1 slowdown was

temporary, Brexit headlines continue to dictate price action. (See POV - BREXIT

RISK POINTS TO FURTHER GBP DOWNSIDE). The comments from Germany that said PM

May's Brexit workaround plan as 'unworkable' wiped out European morning gains

with a reversal from $1.3275 to $1.3205. Expect headlines from tomorrow's

cabinet meeting at the PM's country residence.

- The USD was weaker across the board with modest gains for EUR, CAD & NZD. Soft

ADP data was countered by improved revisions, ISM Non-mfg beat expectations.

- SEK was top of the G10 pile for the third consecutive session, extending its

rise against the EUR (2.5%) to SEK10.2133.

- The Forint also improved against the EUR (1.95%) to HUF322.84 having rejected

a break of long term trendline resistance around the HUF330 area.