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(Z1) Off Lows, But Remains Weak


Still Vulnerable


Bullish Price Sequence

MNI (London)
CABLE: BOE MPC Vlieghe weekend comments, which added to the dovish outlook for
the BOE, acted to press sterling lower through Monday's session. Cable touched a
low of $1.2961 but managed to recover through the US session to $1.3003 before
it drifted back to $1.2989 into the close. Asia slightly extended this pullback
to $1.2986 in early trade but managed to recover for a retest of the NY high of
$1.3003 but again struggled to maintain a toehold. Rate settled back around
$1.29990 through to the European open before fresh sales emerged to punch rate
back down to $1.2970, recovery efforts so far holding shallow. UK data (focus on
PMI's) now seen determining the next BOE MPC rate move though interesting to
note that one US investment house (MS) has suggested that they see a 'strong
fiscal stimulus of around 1% of GDP from April 2020' which could act to keep the
BOE on hold, adding that they could turn hawkish at Bailey's initial MPC meeting
in May.
- Support $1.2970/61, ahead of $1.2950. Break to open a deeper move toward
$1.2920 ahead of $1.2905/1.2895. Resistance $1.3000/05,
$1.3010/20(55-dma/50-dma) ahead of $1.3050.   
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |