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Free AccessBreaks Support at Gbp0.8970
Sterling demand seen through Thursday's 1600BST fix provided the impetus for EUR/GBP to break below Gbp0.9000, with ensuing sales extending the move to allow for a challenge on next support at Gbp0.8970. Recovery efforts were capped at Gbp0.8980 through Asia with fresh sterling demand providing the added weight to ease rate below Gbp0.8970 into Europe. Further sales have taken rate down to Gbp0.8960 with recovery efforts so far holding shallow. Expect some support between Gbp0.8955/45 ahead of stronger level at Gbp0.8938. Move also sees rate extend away from its key technical 10-dma, currently at Gbp0.9015, with the base of its 1.0% 10-dma envelope currently seen at Gbp0.8925. Retail Sales data from the UK was seen stronger then forecast. Some positive noises from the EU/UK Brexit meeting, though with caveats on fishing, providing some of the support for sterling. UK flash PMI set due for release at 0930BST, the Services component in view(median 57.0).
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.