Fundamental Reports

Aggressive traders had their buy opp overnight as rate touched then bounced off support around the 1.5600 area; official buyers in the market lifting rate back to the psychological 1.6000 area. Fears of a large rate cut apparently not in play today. Stops noted on the move back through the 1.5780 area and above Traders note unwinding of Yen cross-spreads driving a lot of trade after the open. Large range suggests more volatility coming soon. Traders note liquidity is better than last week but still low. Aggressive traders should be flat ahead of the election results. Expect more whippy action. Two-way action likely to continue. Confirmed sovereign interest on the dip overnight in both EURO and GBP; lately Asian names.

Data due Wednesday: All times EASTERN (-5 GMT)

4:30am GBP Manufacturing Production m/m

4:30am GBP Services PMI

4:30am GBP Industrial Production m/m

5:30am GBP BRC Shop Price Index y/y

10:30am GBP CB Leading Index m/m

7:01pm GBP NIESR GDP Estimate

Analysis by: - Written by Jason Alan Jankovsky

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