Global Markets Update

The MPC voted 7-2. Weale and McCafferty voted for a 25 bps rate hike, but that was ahead of the weak data we’ve seen out of the UK recently. Cable rallied to 1.6680 on the news, however, this seemed more like some short covering by fast money as the pair looks bit oversold in the short-term. GBP/USD is now consolidating around 1.6650 and I expect it to continue to trade with an offered tone ahead of the FOMC minutes.

EUR/USD took out the barrier at 1.33 and triggered stops on the way down to 1.3285. Next support lies ahead of 1.3250, where not-so-surprisingly, more barrier structures are reported. London has picked up the USD-positive sentiment from the previous two sessions with USD/JPY extending gains to 103.35 and the commodity currencies staying under pressure.

European equities are mostly in the red this morning. DAX, CAC and the EUStoxx 50 declined 0.40 %, while the FTSE 100 is down 0.30 % on the day. S&P 500 futs are down 0.15 % and the US 10 year rose to 2.42 earlier.

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