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Risk back on the table, strong UK GDP.........>

FOREX
FOREX: Risk back on the table, strong UK GDP boosts GBP
- Risk appetite returned overnight following announcement of the EU migration
policy deal. Demand via the crosses was seen lending support to the majors with
big gains seen particularly in EUR & GBP.
- EURJPY spiked 120 pips through Y129.00, EURUSD tracked the move to $1.1666,
GBPUSD touched $1.3129. AUD & NZD also received a welcome relief.
- Traders faded the risk-on move into Europe. EURUSD based at $1.1613, before
later settling around $1.1650.
- Despite early profit taking, GBP was the big winner. Strong Q1 GDP (0.2% q/q
vs median 0.1%) with added support from EU Barnier remarks that progress has
been made but big divergences remain on Brexit, squeezed to extended react highs
of $1.3183. EURGBP pared overnight gains to hold either side of Gbp0.8840.
- AUDNZD closed above the 200-dma yesterday, the short squeeze through NZ$1.0900
(migration policy deal) underpinned AUDUSD to briefly trade above $0.7400. NZD &
CAD registered modest gains, last $0.6783/C$1.3220.
- Mth/quarter end flow to dictate price action. PCE/Chicago PMI main highlights.

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