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Having earlier printed fresh YTD lows of......>

FOREX
FOREX: Having earlier printed fresh YTD lows of $1.3102, GBP/USD surged
following the BoE rate decision. A 6-3 rate split & the announcement to unwind
QE once the bank rate reaches 1.5% was deemed hawkish and cable moved above
$1.3200. Persistent USD sales squeezed the pair to to $1.3270, before profit
taking kicked in, last ~$1.3245.
- USD/JPY pared all Asia/Europe gains amid a backdrop of softer US Tsy yields &
US stocks after the US Supreme Court's decision ruled states can collect sales
tax from online retailers. USD/JPY touched pullback lows of Y109.84, last
Y109.90.
- The broadly weaker USD saw NOK, GBP & CHF top of the G10 pile. Hawkish
rhetoric from the Norges bank, indicating a September hike triggered NOK
strength. The SNB decision was largely a non-event, with the economic
projections garnering the most interest.
- AUD & NZD both recovered off fresh YTD lows
- Banco de Mexico hiked rates by 25bp to 7.75% as expected.
- Focus on Friday on prelim EZ & US PMIs, CA retail sales & CPI & Japan CPI.
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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