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GBP Remains Soft as BoE Engage with Regulators on Negative Rates

STERLING

GBP continues to nurse losses in the wake of the BoE rate decision, with rates markets bringing forward their expectations that UK interest rates will turn negative in February 2021 from the previous pricing of March.

GBP/USD was sold in size (best volume in GBP futures for a month) down to 1.2883 before stabilizing. Yesterday's lows are first support at 1.2875, with Fib support at 1.2856 just below.

GBP is now solidly the poorest performer in G10 at the NY crossover, although NOK is similarly weak.

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