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Sterling still enjoying transition deal.......>

FOREX
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. 

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