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Release of stronger than forecast US..........>

FOREX
MNI (London)
FOREX: Release of stronger than forecast US Employment Report, NFP 201k vs 195k
median; AHE 0.4%mm vs forecast 0.2%, prompted strong USD demand which drove
EUR/USD to an initial low of $1.1562, extending post London fix to $1.1556. 
- USD strength added to the downside pressure on the AUD allowing AUD/USD to
extend its recent easing to a fresh YTD low of $0.7104. Pressure was also seen
on the NZD though AUDNZD was able to further extend its lows to N$1.0865. 
- USD/JPY recovered off its Asia low of Y110.38 through the European morning,
gaining an added boost to Y111.25 on NFP react but  pressure on the EUR saw
EUR/JPY lead USD/JPY back down to Y110.74. Rate settled around Y111.00 in late
trade. 
- Cable extended its recent recovery to $1.3028 as EU Barnier adopted a
conciliatory tone on the Ireland border back stop but USD strength post data
added to the corrective pullback as it drifted to $1.2920. Again the stronger
reaction lower in EUR/USD allowed EUR/GBP to challenge its 10-dma 1.0% envelope
base at Gbp0.8913 before it bounced back to Gbp0.8950.
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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