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Sterling Stable Ahead of Bill Vote

FOREX

GBP trades a little better, albeit still just above last week's lows, with markets watching activity in the House of Commons as the government's contentious Internal Market Bill is set to pass the Commons in the second reading. Despite more stable spot markets, options reflect more caution, with 1m risk reversals today hitting multi-month lows.

The leadership campaign to become Japanese PM passed as expected, with former cabinet secretary Suga set to take the role. JPY was unreactive, with USD/JPY well within recent ranges this morning. The USD index is similarly stable, with Monday's range well within that seen last week.

Market focus is beyond today's events, with the Fed and BoE rate decisions due on Wednesday and Thursday respectively drawing most attention.

The calendar is typically quiet for a Monday, with no tier 1 releases on the slate. The speaker schedule is a little busier, with ECB's Makhlouf and Lane both on the docket.

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