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GBP Shrugs Off PMI, JPY Focus Remains on Vol

FOREX
  • GBP/USD sees little response to the downward revision in services & composite PMI, with the USD remaining dominant in early European trade.
  • Volumes and activity are generally below average for this time of day - following the lead of the quieter Monday session. Participation and price action should pick from tomorrow, with the BoC/ECB decisions, UK budget, Powell appearance & February NFP all due within three days of each other.
  • The greenback has corrected off the strongest levels of the session, prompting a pullback off highs in USD/CAD which trades back to flat - with market focus on tomorrow's BoC decision (MNI Preview here: https://roar-assets-auto.rbl.ms/files/60215/BOCPre... )
  • JPY remains the firmest currency of the day (just), with USD/JPY again failing to make convincing headway above Y150.50 and re-correcting back below. Y150.89 remains the bull trigger in the pair, marking the Feb 13 high. Market vol remains a key factor, with front-end implied remaining under pressure Tuesday, and focus on any pick-up into the tail-end of the week.

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