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Rate edges back toward yesterday's....>

EURO-STERLING
EURO-STERLING: Rate edges back toward yesterday's lows of Gbp0.8875 with the EUR
largely the culprit. Further woes for Italian banks and the ECB's forcing them
to cover NPL portfolios sees EUR ahead of only the CHF in today's G10 trade. A
fall through the Gbp0.8875 mark would open the 200-dma at Gbp0.8864 and the
61.8% retracement for the Gbp0.8656-0.9108 move at Gbp0.8829.
EUR/GBP put buys today have been popular, with the notional traded put/call
ratio sitting at 2.3 so far Tuesday. Gbp0.8300 put strikes have been
particularly popular, with interest also in puts rolling off at Gbp0.86. 

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