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GBP struggled yet again on Wednesday, as......>

CABLE
CABLE: GBP struggled yet again on Wednesday, as the latest set of inflation data
broadly missed estimates. This prompted a $1.3010 print in GBP/USD, representing
a fresh YtD low, although rates markets were relatively unchanged after the
data. MNI's PINCH model still sees the probability of an August BoE rate hike at
just under 80%.
- GBP/USD calls were in vogue, with focus on expiries just after the BoE's Aug
rate decision, with strikes layered from $1.3150-1.3500.
- There was a late, limited relief rally on a report that an extension to the
Article 50 deadline is being discussed in the backrooms of Brussels, as MEPs &
officials from EU member states weigh up plans to avoid a cliff-edge Brexit
(although the horizons touted vary).
- GBP/USD last $1.3075, support noted at the aforementioned YtD low ($1.3010)
with resistance at the 61.8%/76.4% retracements of the move from $1.3120 to
$1.3010 ($1.3078/94), which has seemingly limited cable to a high of $1.3083.
- Focus now turns to today's UK retail sales release, a written interview with
BoE's Tenreyro on Friday & an address from BoE's Broadbent on Monday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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