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UK Assets Extend Underperformance

GBP

GBP slipping further in recent trade to extend the day's underperformance - 50-dma now fast approaching at 1.3208 but that doesn't look like solid support here.

Notably spot markets running well ahead of options at present, with risk reversals not following suit just yet. Front-end RR contracts are still above last week's lows, possibly buoyed by betting market's continued belief that a trade deal will be struck with the EU by the end of 2020: 57.4% Deal, 43.5% No deal

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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