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Cable continued to pare its month-end.........>

CABLE
MNI (London)
CABLE: Cable continued to pare its month-end gains, the rate having seen an
extended high of $1.2643 at the Apr30 fix, the rate easing to $1.2484 in NY
Friday. Weekend comments from US Trump on China's failed efforts to contain the
COVID-19 outbreak has upped tensions with risk aversion seen through Asia. This
added weight has taken cable to a low of $1.2427 in early Europe with underlying
tone remaining bearish. Move has basically been in line with easing seen in
EUR/USD, though EUR/GBP was able to make a brief show above Gbp0.88, the rate
currently trading around Gbp0.8793. The move and close above its
10-dma(Gbp0.8750) seen adding to sterling's general bearish outlook, and exposes
the topside of its 1.0% 10-dma at Gbp0.8837. For cable, next support seen at
$1.2410 ahead of $1.2399/89(61.8% 1.2248-1.2643/Apr29 low). Resistance $1.2460,
$1.2484, $1.2516.
- A light calendar in the UK Monday. Focus this week on Svcs PMI Tuesday, BOE
MonPol announcement Thursday ahead of Friday's holiday.    
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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