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Tepid Sterling Recovery -After yesterday's....>

FOREX
FOREX: Tepid Sterling Recovery
-After yesterday's precipitous slide in sterling on an even murkier outlook for
Brexit, GBP has staged a pretty unimpressive recovery against most others
despite better than expected domestic data. Theresa May is travelling to
Brussels later today to modify her agreement with the EU in a last-ditch attempt
to sway lawmakers to vote for her vision of Brexit. GBP/USD recovered back above
the $1.26 handle but markets clearly remain happy to sell rallies.
-After a very modest positive close for equities in the US, futures markets are
indicating another slightly higher open for the Tuesday session, helping supress
the JPY and CHF somewhat today. Reports that US trade rep Lighthizer and China's
VP Liu had a constructive phonecall on trade overnight helped underpin.
Elsewhere, Scandi FX trades well with SEK at the top of the G10 pile as traders
watch for PPM flows to kick off tomorrow.
-US PPI numbers are the data highlight of the day but the speaker schedule
remains particularly light as Fed remain in their blackout period ahead of the
rate decision on the 19th.

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