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UK data: traders pare back expectations for BoE tightening - Scotiabank

Analysts at Scotiabank noted that the key UK Services PMI data showed a pick-up in activity in Apr, with the index advancing to 52.8 in the month, from 51.7. 

Key Quotes:

"However, the report failed to match market estimations of a gain to 53.5. Investors continue to pare back expectations for BoE tightening – not just for the looming May meeting but beyond as well."

"In addition, we think the GBP is facing some near-term political risk, with today local elections in England possibly delivering more bad news for PM May just as the Prime Minister is struggling to formulate a coherent Brexit policy with a defiant Cabinet. Sterling has steadied but we don’t necessarily believe downside risks have eased."

Gold bulls get some breathing room on gradual Fed, 200-D SMA/YTD lows safe

Gold has bounced on the day so far, catching a bid from the 200-D SMA while the dollar heat has been turned down a touch and US yields pull back furth
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EUR/USD sidelined ahead of NFP on Friday

The EUR/USD is trading at around 1.1974 up 0.20% in Thursday’s trading. The pair is trading close to a 4-month low below the 1.2000 psychological le
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