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GBP Bull Binge Sees Cable Narrow Gap With 2018 High

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GBP's impressive rally continued in early Asia-Pac hours, with GBP/USD running higher amid thin liquidity to touch 1.4237 - the best level since 2018. This narrows the gap considerably with the multi-year highs of 1.4377 - a considerable level for the pair. Contrasting the recent bull run, RSI measures are flashing the pair as technically overbought, which could suggest progress may slow from here.

At the other end of the scale, JPY is on the backfoot, reflecting the impressive recovery in US equity markets ahead of the Tuesday close. USD/JPY trades within 40 pips of the 2021 highs, but EUR/JPY's run has been more notable, with the cross extending gains to the best levels since late 2018.

There are few tier one data releases due Wednesday, leaving focus on the central bank speaker slate - BoE's Bailey, Haldane, Broadbent, Vlieghe and Haskel all speak as well as Fed's Powell (second part of his semi-annual testimony), Clarida and Brainard.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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