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FOREX: Single Currency Fades Through Support, Challenges Key Level

FOREX
  • EUR/GBP has dipped back to flat and (just) into negative territory as the single currency fades towards the day's lows and the early GBP underperformance reverses somewhat.
  • EUR/USD is now within range of layers of support between 1.0821 - 1.0826 support, marking last week's multi-week lows and the 200-dma. 
  • Spot now trades pinned between sizeable options interest for today's NY cut - with E666mln rolling off at 1.0800 and near E1.2bln expiring between 1.0825-50. 
  • No specific headline or data drivers for the single currency as markets watch for Fed/BoE/BoJ event risk mid-week as well as the Eurozone CPI estimate - which is expected to clear the way for a further ECB rate cut as soon as the September meeting. 
     

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