Sterling's sigh of relief may not last........>

FOREX: Sterling's sigh of relief may not last

-After being one of the poorest performers this week, the Thursday session saw

GBP buck the trend and extend the recovery from multi-year lows printed this

week at $1.2382 as the currency benefited from a trifecta of good news.

Speculation the EU could soften their stance on the Irish border, a better set

of retail sales for June and the passing of a motion in the Commons making it

more difficult to force a No Deal Brexit all helped support. Nonetheless, the

GBP/USD upside flagged ahead of $1.25, leaving the pair uncomfortably close to

recent cycle lows.

-ZAR outstripped the rest of EMFX following the central bank's 25bps rate cut as

the SARB board played down the likelihood of further action, emphasising that

fiscal measures are now needed to support growth. USD/ZAR looks set to close

below 14.00, opening a move on the recent low at 13.8343.

-Japanese CPI, Canadian retail sales and US Uni. of Michigan survey are the data

highlights Friday. Speeches are scheduled from Fed's Bullard and Rosengren ahead

of the blackout period kicking in at the close.