GBP/USD shrugged off considerably weaker than forecast CBI...

Flanking the G10 ranks, Sterling shrugged off considerably weaker than forecast CBI distributive sales on the way to setting fresh 1.3100+ peaks vs the Dollar and re-testing offers around 0.9000 against the Euro. However, the Yen has extended losses across the board as US Treasury yields rebound further from recent lows and the curve continues to re-steepen ahead of this week’s debt auctions, with Usd/Jpy nudging over 106.50 and Eur/Jpy is also probing above 126.00 of the back of this. Nevertheless, broad risk sentiment is waning and could yet rekindle demand for safe havens, while the Greenback may be prone to early month end rebalancing sales as initial signals via bank models are net bearish.