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Softer equities saw Treasuries outperform.....>

FOREX
FOREX: Softer equities saw Treasuries outperform on Tuesday, dragging the dollar
lower with yields, but the DXY remains well its recent range.
- GBP was the best performer as the UK Services PMI printed multi-month highs,
lifting GBPUSD to highs of 1.3393 in Europe before news that the UK's opposition
Labour party will push for a softer Brexit helped the pair above 1.3400. Key
resistance remains layered above 1.34 before any test on the 200-DMA at 1.3590.
Cable last ~1.3400.
- CAD was one of the worst performers in the G10 as the US threatened to split
NAFTA talks into bilateral discussions. USDCAD briefly traded at levels not seen
since March before retracing.
- Reports that the ECB see the June 14 meeting as 'live' for a decision on QE
dented the greenback further in favour of the EUR.
- MXN & BRL were sharply lower on the day.
- Focus on Wednesday will fall on Australian GDP, Canadian trade data and
speeches from ECB's Praet, Knot & Hakkarainen, as well as BoE's Tenreyro &
McCafferty.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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