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Forex - EUR/GBP, GBP/USD Flows: Cable finally gives best to the mighty USD

 13:21 (GMT) 25 Oct

  [Forex Flows]

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EUR/GBP, GBP/USD Flows: Cable finally gives best to the mighty USD (0100-HMFP-C01)

After not doing much of anything all morning Cable has finally succumbed to the strength of USD to trade down to 1.2120 in a hurry. With EUR/USD doing very little, this has had the effect of spiking EUR/GBP up to 0.8950s, with the worry of what BoE Governor Carney might say in the House of Lords probably influencing participants. We are expecting to hear from Carney circa 3.30 pm London time. IJ.

Forex - USD/CAD WTI Flows: Bank of Canada making missing the inflation target complicated!

 15:39 (GMT) 24 Oct

 [Forex Flows]

The Bank of Canada would appear to be making their missing of the inflation target more complicated with 3 different core inflation measures. The market took about 10 minutes to consider the statement and then went for default mode i.e. buying USD/CAD and we are now trading the highs of the day in the 1.3370s. With the oil price under pressure and USD generally wanted, I would be surprised if we weren't on the 1.34 handle in the not too distant future. IJ.

Forex - EUR/USD, USD/JPY Flows: The view from the train

 06:20 (GMT) 24 Oct

 [Forex Flows]

An interesting few weeks coming up with the Fed meeting next week and the US Presidential election the week after. The November meeting has by and large been written off for a rate hike given its proximity to the election, despite the protestations of Fed members, but no doubt there will be speculation in the run up. As for the election a Clinton win - and she is 5 to 1 on - is widely perceived as USD bullish. The problem I have with USD at current levels is that it's priced for perfection, i.e. a December interest rate rise and a Clinton landslide and both may well happen but I wouldn't be for chasing the USD higher from here. IJ.