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GBP is trading quietly on the day – Scotiabank

Pound Sterling (GBP) is also trading in a tight range, entering Wednesday’s NA session with a minor gain vs. the US Dollar (USD), Scotiabank's Chief FX Strategist Shaun Osborne notes.

Modest PMI improvement is paired with neutral BoE

"The UK’s final PMI’s surprised to the upside, improving from the preliminaries with services climbing from 50.2 to 50.9 and the composite pushing above 50 into expansionary territory, to 50.3 from 49.4."

"GBP has been trading quietly since last Monday’s multi-year high, consolidating its gains with little in terms of major domestic fundamental releases. Comments from the BoE have leaned neutral in terms of the near-term outlook for rates while signaling caution over the medium term outlook. Markets are pricing a hold for the June 19 meeting and nearly 40bpts of easing by year end."

"The multi-month trend is bullish, and momentum is firmly in bullish territory with an RSI at 60. The DMI’s are providing confirmation, along with the MACD. The near-term range is defined by support below 1.3450 and resistance above 1.3550."

EUR flat vs. USD following modest improvement in PMI’s – Scotiabank

The Euro (EUR) is entering Wednesday’s NA session unchanged against the US Dollar (USD), quietly consolidating in a tight range just below 1.14, Scotiabank's Chief FX Strategist Shaun Osborne notes.
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JPY: Media report of BoJ equivocation on policy normalization – Scotiabank

The Japanese Yen (JPY) is weak, down 0.2% against the US Dollar (USD) and underperforming all of the G10 currencies with all other major currency peers showing modest gains (vs. USD), Scotiabank's Chief FX Strategist Shaun Osborne notes.
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