GBP quakes as USD driven higher - An..........>

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%.