Brexit deal Thursday saw cross drop...>

EURO-STERLING: Brexit deal Thursday saw cross drop to a low of Gbp0.8576 only to

bounce back sharply as attention quickly switched to the chances for this agreed

deal to get passed in the UK parliament. Rate spiked up to Gbp0.8703(more a

factor of poor sterling liquidity) before it initially settled on Gbp0.8640.

Some optimism emerged in late NY which allowed sterling to pick up some late

demand, eased rate to Gbp0.8630 into the close. Asia saw position adjustments,

prompted by the break back below Y140 in GPY/JPY, saw the cross edge to

Gbp0.8662 before Europe provided fresh sterling demand which has eased rate back

to Gbp0.8640. Traders to watch Brexit developments, especially trying to gauge

if PM Johnson can get the needed support to get this deal passed at the special

sitting Saturday.

- Cross now back within the lower parameters of the 1.0%(Gbp0.8716) and

2.0%(Gbp0.8628) envelopes (drawn around the 10-dma). A break above Gbp0.8716 to

expose the 10-dma at Gbp0.8804.