GBP spikes on BoE 6-3 rate split - Having.....>

FOREX: GBP spikes on BoE 6-3 rate split

- Having earlier printed fresh YTD lows of $1.3102, GBPUSD spiked following the

BoE rate decision. A 6-3 rate split and the announcement to unwind QE once the

bank rate reaches 1.5%, was deemed hawkish and GBPUSD moved above $1.3200.

Persistent USD sales squeezed to $1.3270, before profit take sales eased.

- USDJPY pared all Asia/Europe gains amid a backdrop of softer UST yields. US

stocks also encountered pressure following the Supreme court's decision that

ruled states can collect sales tax from online retailers. USDJPY touched

pullback lows of Y109.85 and continued heavy.

- The broadly weaker USD saw NOK, GBP & CHF top of the G10 pile. Hawkish

rhetoric from the Norges bank which indicated a September hike saw USDNOK touch

Nok8.1170. A largely non-event by the SNB still witnessed strong CHF gains,

printing 0.9897 against the USD.

- AUD & NZD both recovered off fresh YTD lows ($0.7346/0.6826) to

$0.7394/$0.6883 respectively.

- As expected Banco de Mexico hiked rates by 25bps to 7.75%. USDMXN Mxn20.2579