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

FOREX
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.

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