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Free AccessSterling still enjoying transition deal.......>
FOREX: Sterling still enjoying transition deal ahead of data deluge
-GBP sits at the top of the G10 as yesterday's transition deal agreement
continues to buoy sentiment ahead of key CPI figures later this morning. GBP/USD
touched $1.4063, just shy of yesterday's best levels at $1.4088. Risk reversals
continue to climb, with 1m RR touching the best levels since early February,
further supporting the currency.
-NOK also outperforms as the country's beleaguered Justice Minister avoided the
early collapse of government by resigning from her position, dodging a vote of
no confidence later today. NOK/SEK now looks to test key resistance at the NOK
1.0630 level (61.8% Fib for the 1.1052-0.9948 move).
-NZD and AUD are among the poorest performers today with soft iron ore prices
being cited, alongside a weaker JPY (traders cited strong buying of EUR/JPY and
GBP/JPY overnight), but much focus remains on tomorrow's FOMC decision. The USD
trades broadly mixed with no fresh impetus for price action.
-Markets now focus on UK CPI at 0930GMT ahead of the German ZEW survey at
1000GMT.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.