Trial now
SILVER TECHS

Needle Still Points South

EUROZONE ISSUANCE

EU issues RFP for NGEU transaction

FOREX

FX OPTION EXPIRY

WTI TECHS

(N1) Watching The 20-Day EMA

BTP

Few question on BTP being under pressure

Cable Approaching $1.3000

CABLE
  • Sterling was able to take some advantage of the general risk on tone in Asia.
  • House Speaker Polosi comments that a pre election stimulus deal seen more hopeful after her meeting with Treasury Secretary Mnuchin provided the risk on feel, despite reported counter comments from McConnell.
  • Risk linked demand allowed cable to push above Tuesday's high of $1.2979 to $1.2984 in Asia, extending its recovery off the $1.2920/10 area.
  • Buoyant tone remains into Europe.
  • However, Brexit headline watch remains in play and could make market wary of taking rate back above $1.3000.
  • Support remains at $1.2920/10. Resistance into $1.3000, stronger at $1.3025/30.
  • Release of UK inflation data did little to dent sterling buoyancy, cable extends recovery to $1.2987 in post data trade.
  • MNI Techs: Oct 12 high of 1.3083. Break of Oct12 high is needed to resume the recent uptrend that would open 1.3100 and 1.3210. The latter is the former trendline support drawn off the Mar 20 low. Firm near-term support lies at 1.2863, Oct 14 low. A breach to signal a resumption of bearish pressure.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com