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GBP slides as inflation slows -CPI............>

FOREX
FOREX: GBP slides as inflation slows
-CPI inflation in the UK slid to the joint-lowest in 18 months in September
after upside price pressure from recreation and culture, sea fares and food
unwound after spiking in August. As a result, GBP is lower against all other G10
FX so far today. GBP/USD traded below yesterday's low and eyes the 100-dma at
$1.3097.
-NZD extends gains into a second session after being bumped higher by inflation
yesterday, allowing the NZD/USD rate to show above $0.66 for the first time
since Oct2 although the move hasn't been sustained ahead of the NY crossover.
-DXY trades mixed and well within recent ranges. Spot remains wedged between the
50-dma to the upside at 95.220 and the 100-dma at 94.881. Little action in US
yields or US equity futures to inspire in either direction.
-Attention turns to US housing starts and building permits, speeches from BoE's
Cunliffe and Broadbent, Fed's Brainard and ECB's Weidmann as well as the FOMC
minutes release. Markets look for reasoning behind the removal of
'accommodative' from the most recent policy statement.

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