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Looking at GBP overnight ATM FX option.....>

STERLING
STERLING: Looking at GBP overnight ATM FX option vol, both the EUR/GBP & GBP/USD
measures have retraced from the YtD highs seen Tuesday, although the measures do
still sit above the typical levels observed in the early part of 2019 after
hitting the highest levels observed since the 2017 General Election on Tuesday.
- Spot GBP garnered a degree of respite after being pressured in immediate
reaction to the defeat of PM May's vote Wednesday. Most expect her to survive
Wednesday's no confidence motion, with the DUP set to support her, and BBC
sources indicating that the ERG wing of the Tory party will do the same. GBP
also likely drew support after the PM noted that she will enter cross-party
discussions re: Brexit matters before she returns to Brussels.
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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