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Post US Employment Report USD demand..........>

FOREX
MNI (London)
FOREX: Post US Employment Report USD demand continued through Asia and into
Europe Monday, aided by risk concerns after US Trump threatened increased import
tariffs on China upping the recent trade spat. Strong EUR/USD sales emerged in
early Europe which took rate through its recent low(Sep4) of $1.1530 before it
ran into strong demand that based move at $1.1526. Cable further extended its
pullback low, off Friday's high of $1.3028, to $1.2897. Cable recovery initially
tracked EUR/USD but sterling gained its own boost on release of stronger than
forecast GDP data. Cable extended gains as EU Brexit negotiator Barnier comments
hit the wires, 'a Brexit deal is realistic in 6-8 weeks', spiked cable to
$1.3052. Move outpaced EUR/USD's recovery, which allowed EUR/GBP to dip under
Gbp0.8900. Cable was seen setting around $1.3020 in NY afternoon trade. 
- USD/JPY kept to recent levels around Y111.00, leaving EUR/JPY to track EUR/USD
moves.
- Commodity tied FX remains defensive. AUD & NZD printed multi-year lows of
$0.7097/0.6513 respectively, while USDCAD stalled ahead of C$1.3200. Some
suggest Wednesday may bring US Trump comments on further trade tariffs. 
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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