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GBP spikes on hawkish BoE but risk-off........>

FOREX
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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