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Free AccessGBP spikes on hawkish BoE but risk-off........>
FOREX: GBP spikes on hawkish BoE but risk-off markets quickly pare gains.
-As expected the MPC voted 9-0 to keep policy on hold at 0.5%. Hawkish
commentary from the BoE which lifted growth forecasts and said it may need to
raise rates earlier, saw Gbp/Usd spike to extended react highs of $1.4067.
-Profit taking ahead of the European close took the rate back under $1.4000,
before risk averse markets took hold (Dow -675 at one stage) with the corrective
pullback extending to $1.3880.
-Risk-off markets unsurprisingly saw the CHF and JPY benefit. Usd/Jpy took out
reported demand through Y109.00, Eur/Jpy moved through the 100-dma to Y132.94,
Gbp/Jpy dropped near 325 pips off its BoE react high of Y154.04.
-Eur/Usd continued to hold between $1.22-1.23 and needs a significant break
either side for clearer direction.
-Dovish commentary from RBA Governor Lowe with added USD demand took Aud/Usd
through $0.7800 in early NY, slippage extended to $0.7782. Key support at
$0.7772/53 (100 & 200-dma's).
-UK Industrial/Mfg Production the main highlight tomorrow at 0930GMT.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.