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GBP dropped sharply on Tuesday, with cable....>

CABLE
CABLE: GBP dropped sharply on Tuesday, with cable printing a low of $1.3070 in
the build up to the the Commons vote, as markets speculated that the UK
government would lose the vote & be forced to pursue Customs Union membership in
a 'no deal' Brexit scenario. Nonetheless, PM May narrowly avoided defeat
(largely due to threats of a fresh election), helping GBP off of the lows, but
it was still the worst performer in the G10 space on the day.
- This came after a solid UK labour market report provided support in early
dealing, further cementing the case for an August rate hike at the BOE.
- The cross last deals at $1.3112, with support at Tuesday's low ($1.3070), with
resistance noted at Tuesday's high ($1.3269).
- Focus now moves to UK inflation data due Wednesday, ahead of Thursday's retail
sales release.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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