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Strong UK Retail Sales boost sterling -.......>

FOREX
FOREX: Strong UK Retail Sales boost sterling
- Risk gained a boost in Asia as markets reacted to headlines that China trade
officials will travel to the US for talks. This theme spilled over into Europe
with the USD losing ground across the board, before fading some of the move.
- Sterling received a lift after strong headline and component UK Retail Sales.
Warm weather and the World Cup boosted sales with strength particularly seen in
the food sector. GBP squeezed 20 pips on release to $1.2726 but soon pared light
gains. EURGBP comfortably holds above Gbp0.8940.
- As expected Norges bank left policy unchanged at 0.5% and in the accompanying
statement said outlook and the balance of risks do not appear to have changed
substantially since the June report. EURNOK failed to react, last Nok9.5960.
- TRY gained renewed support from news that Qatar has pledged to invest $15bn in
Turkey and registered its third consecutive session of gains. USDTRY touched
pullback lows of Try5.6968.
- EUR, AUD & NZD hold modest gains ahead of the NY crossover. US data today at
1230GMT from Housing Starts/Building Permits & weekly Jobless Claims. 

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