GBP/AUD/JPY As noted above, the Pound encountered turbulence after remarks from the MPC that were notably more sanguine on inflation than Ramsden or Saunders last week, as Broadbent sees a clear parallel with changes in oil prices and concluded that the most reasonable assumption is generally that the direct effect on inflation will be gone in a year or so, and before monetary policy could do much about it. Cable subsequently stumbled having regained 1.3700+. Meanwhile, the Aussie has been resilient almost throughout on the back of upbeast trade data and not too hampered by 1.5 bn option expiries residing between 0.7370-75, but could not quite reach 0.7400 or 1.0600 against the Kiwi in advance of preliminary PMIs. Elsewhere, the Yen held just off its midweek low without that aid of many in Japan on the first of 2 market closures into the weekend, and got equally close to 110.00 before against the backdrop of a bouncing Buck with the index topping 92.900 in late European trade.



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