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GBP Rolls Off Monday's High, 100-dma Proves Worthy

FOREX
  • GBP is the softest currency in G10 so far Tuesday, with GBP/USD rolling off the Monday high as markets reject gains ahead of the 1.3943 100-dma, which has switched from soft support to solid resistance. This keeps the balance of risks tilted lower given the downtrend posted since the start of June, raising focus on Monday's multi-month low of 1.3787.
  • The greenback's weakness Monday proved temporary, with the dollar among the strongest in G10. The USD index has edged back above the 92.00 handle, leaving the Friday cycle high at 92.41 well within reach.
  • US existing home sales and Richmond Fed Manufacturing Index are the data highlights as well as Eurozone advance consumer confidence for June. Central bank speakers worth watching include ECB's Rehn, Lane and Schnabel as well as Fed's Mester Daly and Powell's testimony to Congress.
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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