MNI: BOJ Tankan: Key Sentiment Rises, Solid Capex Plans

MNI BRIEF: Trump Likely To Let Powell Serve Full Term-Moore

MNI BRIEF: Canada Household Debt Tops $3 Trillion In 3Q

MNI BOJ DEC TANKAN LARGE MFG INDEX +14; SEPT 13; MEDIAN +12

MNI INTERVIEW2: Poland To Push For EU Defence Fund

MNI BRIEF: China To Keep Stabilising Housing Market - CEWC

MNI: UK DEC GFK CONSUMER CONFIDENCE INDEX -17

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Brexit Hopes Continue to Provide Underlying Sterling Buoyancy

CABLE
MNI (London)
  • Hopes for a Brexit trade agreement continues to provide some underlying buoyancy for sterling.
  • Cable managed to recover off an early Tuesday low of $1.3001 to $1.3080 ahead of the 1600GMT fix before USD demand eased rate back to $1.3046 into the close.
  • Early Asia USD demand, prompted by general risk off and reacting to reports France could move into a full lockdown, saw cable pressed to a low of $1.3021 before buyers emerged.
  • Rate edged to $1.3047, opening Europe extended move to $1.3064 as EUR/GBP felt the weight of general EUR sales.
  • EUR/GBP back below its 10-dma(Gbp0.9061) which if holds keeps sterling buoyant tone in place. Cross traded down to Gbp0.9015.
  • Traders have noted poor liquidity in sterling markets.
  • Month-end value could see US corporate USD demand emerge. Models have suggested USD sales to be seen at Friday's fixes, with cable likely a beneficiary.
  • Light data/speaker calendar for the UK Wednesday. Focus on Brexit headlines, COVID spread and next week's US election.
  • MNI Techs: GBP/USD holding above Monday's low of 1.2993. An extension higher would suggest recent corrective pullback is over. S/T bullish conditions still dominate. Oct 21 rally reinforced a bullish theme, confirming resumption of the upleg since Sep 23. A break of 1.3177, Oct 21 high, would open 1.3269, former trendline support drawn off the Mar 20 low. Sub 1.2993 levels though would resume the recent corrective pullback.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

To read the full story

Close

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.