It's been a mixed session for the majors since last night's USD rally; the major mover has been GBP which has crumbled in the face of comments from BoE Governor King that the drop in the pound is helpful to rebalancing the UK economy. These comments were echoed by MPC member Dale in a speech this afternoon, forcing GBPUSD down over a percent on the day at 1.6100, and correspondingly sending EURGBP surging higher, currently 0.9145.

Equities have had an indecisive day and currencies have largely been swayed in tandem; IFO reports out of Germany were pretty much a non-event; Business Climate rose on the month to 91.3 (90.5 prior), but less than the markets were hoping for (consensus 92.0). Since the US open, we've had Jobless Claims which were mixed on the week, both continuing and intial claims were lower than forecast, but there were upward revisions to last week's numbers. There were also headlines that the Fed would be scaling the size of the TAF program which sent the USD rallying from 76.10 up to current levels at 76.40, and paring back equity market gains. Existing Home Sales for Aug came out at -2.7% vs forecasts for a 2.1% rise (7.2% in Jul), rattling investors and sending equity markets south which only added extra fuel to the USD rally.

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