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Looking at GBP overnight ATM FX vol,.......>

STERLING
STERLING: Looking at GBP overnight ATM FX vol, both the EUR/GBP & GBP/USD
measures sit shy of the YtD highs seen Tuesday (representing the highest levels
observed since the 2017 General Election), although the measures do still sit
above the typical levels observed in early 2019.
- Spot GBP received some respite after being pressured in immediate reaction to
the comprehensive defeat of PM May's Brexit deal in the Commons on Tuesday. 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.
- EUR/GBP & GBP/USD operated in fairly limited ranges overnight all told.
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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