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GBP Surges as PMIs Signal More Resilience Across Q4

  • GBP is comfortably the best performer across G10 headed through to the NY crossover, with solid November prelim PMI data largely responsible. Both manufacturing and services PMIs came in ahead of forecast (manufacturing at 46.7 vs. Exp. 45.0, services at 50.5 vs. Exp. 49.5). GBP/USD rallied to touch 1.2564 in response - a move that's largely held headed into NY hours, although Thanksgiving holidays and market closures should keep activity more muted here on in.
  • AUD and NZD trade similarly strong thanks to the mild weakness across the USD. The USD Index is off yesterday's best levels after the 100-dma successfully contained prices and acted as strong resistance across Wednesday trade. Supportive China headlines also crossed, working in favour of risk assets as markets continue to bake in expectations of sizeable policy support for the property market and housing sector. AUD/USD continues to hold just below the 200-dma of 0.6587 - a level that held well earlier in the week. Clearance here would accelerate the bullish reversal off the October low, putting prices at levels last seen in early August.
  • There are no notable data releases for the rest of the European session, keeping focus on the ECB minutes release as well as speeches slated from ECB's Makhlouf, Cipollone and Panetta. EM central banks are busier, with both the Turkish and South African central banks taking their latest rate decisions.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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