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GBP Steadies as USD Index Sees Rare Relief

  • Following the market tumult across the UK Friday/Monday, GBP is trading higher as the dust settles, putting the currency above all others in G10 ahead of the NY crossover. Gains remain marginal at this stage, however, with GBP/USD yet to top the late Monday high of 1.0931, which remains the key upside level to prompt any further recovery.
  • The USD Index is also working in favour of GBP/USD, sitting lower in what would mark only the second lower close in seven sessions if current price action is sustained into the close. Equity markets are seen firmer, with futures indicating a positive open on Wall Street later today.
  • Progress for the single currency is slower, however, with a statement issued by Nord Stream hampering any EUR upside. The pipeline operator has claimed that damage to the pipeline is "unprecedented" and they are unable to give an estimate as to when flows will be resumed. EUR/USD dipped on the headline to put the pair within range of overnight lows at 0.9584.
  • Focus turns to the prelim durable goods orders release for August as well as September consumer confidence. The speakers slate is busy: ECB's Centeno, Villeroy, Panetta, de Guindos are scheduled as well as BoE's Pill, Fed's Bullard, Kashkari, and Powell - although the Fed Chair is speaking on digital currencies today.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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