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FOREX
FOREX: GBP quakes as USD driven higher
- An expectedly dire set of PMI figures from across the Eurozone got the USD off
to a strong start, with the greenback again one of the best performers in G10.
JPY has also been a beneficiary, helping pressure the likes of GBP/JPY to the
lowest levels since late March. This bout of USD strength is most convincingly
pressuring GBP so far, exposing decent support at $1.2360 for GBP/USD. A break
below here would open 1.2298, the Apr24 low and the bear trigger at 1.2248. A
particularly poor construction PMI in the UK added to the downside momentum.
- In Asia-Pac hours, the PBoC soothed nerves slightly by setting the mid-point
firmer than expected as mainland China returned from holidays. The move helped
shore up some sentiment in Asia-Pac equities, helping the CSI300 and Shanghai
Composite close higher.
- US ADP employment change will be carefully eyed at 1315BST/0815ET for clues on
just how bad Friday's nonfarm payrolls report could be. Expectations for both
measures are around the -21mln mark. The Brazilian rate decision is also due,
with the BCB seen cutting rates by 50bps to 3.25%.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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