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Short sterling markets have been.....>

SHORT-STERLING: Short sterling markets have been more driven by external factors
than Brexit rhetoric this week (phew) but whippy price action has seen a rally
through most of the week until Thursday's close before a fairly substantial
retracement on Friday.
- The initial trigger for the rally was primarily the deterioration in global
risk sentiment with the sharpest moves higher at the open on Wed with other
notable moves higher at the open on Thurs following the FX flash crash and again
on Thurs following the poor ISM manufacturing print out of the US.
- However Friday saw over half of the week's rally reversed following a very
positive US employment report. Whites are looking to close the week around
2.5-3.5 ticks higher, Reds and Blues 3.5-4.5 ticks higher while the biggest
weekly moves were seen in Greens which are around 4.5-5 ticks higher.
- The domestic agenda picks up again in the week ahead with Carney hosting an
online Q&A on Wed while the Brexit Select Committee will also give an update on
the Brexit negotiations also on Wed before parliament begins to debate the deal
again. On Fri the Nov GDP report will be released along with trade and IP.

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