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Lower than forecast PBOC CNY fix acted to.....>

FOREX
MNI (London)
FOREX: Lower than forecast PBOC CNY fix acted to weigh on the USD in Asia,
allowed EUR/USD to extend its recovery off Thursday's NY pullback low of
$1.1348(seen as market reacted to Mnuchin comment on preparations for further
Turkey sanctions) to $1.1389. USD remained on the defensive in early Europe
before coming under stronger downside pressure as markets reacted to a press
headline suggesting the US will seek to pressure China to lift the yuan in
meetings. EUR/USD spiked up to $1.1419 before it settled back between
$1.1400-10. Traders aware that this $1.1400-10 area holds strikes of expiring
options for today's NY cut totalling E1.9bn. Sterling struggled to keep pace
with the EUR recovery, saw EUR/GBP push to an extended high of Gbp0.8971 as
cable clawed its was back to $1.2732. Cable had seen earlier highs of $1.2749
before it was pressed back to $1.2706 in reaction to spurious rumours that Boris
Johnson would take a Pro-Brexit bus on tour around the UK. Sources denied.
Brexit concerns continue to weigh on sterling into the weekend. USD/JPY seen
contained within its Ichimoku cloud, Y110.46-111.27 though JPY was seen trading
with a general firmer tone.   
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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