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Tracked EUR-USD Tuesday(EUR-GBP continues.....>

CABLE
MNI (London)
CABLE: Tracked EUR-USD Tuesday(EUR-GBP continues to remain attracted toward
Gbp0.9000), as the USD came under general pressure due to position adjustments
ahead of tonight's FOMC with market speculation for a dovish-hike. Cable managed
to extend its recovery, off Friday,s low of $1.2530, to $1.2706 ahead of
Tuesday's NY open but eased off to $1.2621 before it settled around $1.2640 into
the close. Asia again picked up on the dovish-hike speculation and pressed USD
lower again, this time allowing cable to edge to a high of $1.2678 before it
lost momentum and settled around $1.2660 into Europe. Brexit remains a key
driver for sterling though today's FOMC rate decision and Fed Powell press
conference will influence via USD strength. Some suggestion that market may have
left themselves USD short in case the Fed doesn't deliver on the expected dovish
sentiment. 
- Cable support $1.2620 ahead of $1.2600-1.2590. Resistance $1.2690/1.2705.
Shorts could be pressured on a break above.
- UK Inflation data due at 0930GMT. Median forecast for headline CPI to ease to
2.3%yy from 2.4%yy 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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