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Brexit Headlines Drive Sterling Strength

CABLE
MNI (London)

Recovery off Europe morning lows of $1.2863 extended through the NY session and into the 1600BST fix to $1.3064 before easing off to $1.3036. Sterling continues to be led around by the nose on Brexit related headlines, negative EU comments pressed cable to its lows earlier, before reports that the UK would not walk away from negotiations, as tomorrow's Oct15 deadline looms, though PM Johnson will wait to see developments through the Thu/Fri EU Summit, has provided the recovery lift. Nothing definite but is seen keeping optimism for a deal alive. Some suggestion of resistance between $1.3060/80 providing the current cap($1.3072-83 Oct13-12 highs respectively). Despite Brexit, and COVID-19 spread in the UK sterling continues to enjoy an underlying buoyant tone. Near term support seen at $1.3020 ahead of $1.3000.

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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