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GBP, EUR Roll Off Day's Highs vs. USD

FOREX
  • Recovery off lows for the greenback extending in recent trade, with EUR/USD and GBP/USD rolling off highs across US hours, undeterred by the softer MNI Chicago PMI headline as well as soft prices paid and new orders subindices.
  • GBP has flipped from being one of the session's more solid performers to now being bottom of the table alongside JPY, CHF and CAD. Yesterday's lows for GBP/USD still someway off at 1.2120 at present, but we're seeing the best volumes of the day for GBP futures on this pullback - tipping cumulative volumes to sit ~15% ahead of average for this time of day.
  • Worth recalling the majority of sell-side month-end FX rebalancing models all pointed to USD buying into the month-end fix, so markets may be wary of underlying USD demand across US hours.

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