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1.0% 10-dma Envelope Contains Base

EURO-STERLING
MNI (London)

Sterling strength through the day's fixes helped to place pressure on the cross, easing it further away from its key technical 10-dma(current Gbp0.9069) toward the base of its 1.0% 10-dma envelope, currently coming through at Gbp0.8979(low Gbp0.8981). Rate bounced to Gbp0.9022 through the month-end fix before easing back around Gbp0.9000, currently around Gbp0.8992. If rate closes below its 10-dma it should keep the current underlying bearish tone in place, though rate often sees demand interest emerge on the first trading day of a new month in a carry over of fix interest. However, current buoyant tone in sterling should provide some counter should this occur.

MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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