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GBP/USD Keeps Monday High Under Pressure

FOREX
  • Currency markets are in consolidation mode, with the USD Index trading either side of the 94.00 handle. Best performer so far include GBP, with GBP/USD in close proximity to the Monday high of 1.3640. The single currency is faring more poorly, with EUR/GBP lower for a fourth consecutive session. This narrows the gap with key support at the mid-September lows of 0.8501.
  • Following yesterday's downtick in equities, markets have stabilised, alleviating some of the upside pressure on haven currencies including JPY and CHF.
  • Front-end vols across DMFX have seen some support, with 1m contracts edging higher across EUR/USD, GBP/USD and USD/JPY as realised vol lurches higher, bleeding directly into implied.
  • US ISM Services data takes focus going forward, with Canadian/US trade balance numbers also on the docket. Central bank speakers today include ECB's Lagarde & Holzmann and Fed's Quarles.

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