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News flow was dominated by Brexit matters.....>

FOREX
FOREX: News flow was dominated by Brexit matters as a Times story noted that UK
PM May has sealed a divorce deal with the EU re: financial services, which
prompted broader risk on flows. Cable has rallied 85 pips or so and sits at
~$1.2850 facing fibo resistance levels at $1.2866/1.2902 ahead of Oct 25 high at
$1.2919. At the same time, EUR/GBP edged lower last GBP0.8831, with bears
looking for a clean break below the Oct 24 low at GBP0.8816, after probing the
level earlier.
- Broader risk on flows/a USD pullback after yesterday's month-end & SOMA
related gains pushed NZD to the top of the G-10 leader board, as a marginal beat
in the Chinese Caixin M'fing PMI & a wider than exp. Aussie trade surplus
supported sentiment, allowing NZD/USD to cross above some key resistance areas,
leaving bulls to target the 22 October high ($0.6618).
- AUD/USD also gained, allowing bulls to focus on the Oct 17 high ($0.7160).
- USD underperformed its G-10 counterparts, with the DXY pulling back from
yesterday's multi-month highs.
- Focus Thurs falls on the BoE MonPol decision/QIR & UK/US m'fing PMIs.
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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