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Some unwind and positioning in early trade

CROSS ASSET
  • The pound extends some gains against the Dollar, still not yet the best performer, but slowly catching the AUD, with the latter staying stable, as Equity and Govies futures unwind some of their rallies.
  • Usual unwind across assets, and positioning in Europe and the US, as the street turns its attention to the US Employment data later today, but all order flow related, with buying off respective lows in EGBs and Tnotes now.
  • FVA and TUA bough in 3k, French OAT and BTP in over 1k to target their intraday highs.
  • As noted on the open, next immediate resistance in Cable is at 1.2775 High Jan 24.

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