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Cable Firm Through Asia, Awaits Europe Direction

CABLE
MNI (London)

Cable extended its corrective pullback away from Thursday's high of $1.3186 to $1.3010 Friday but like EUR/USD managed to edge back through the fix, closing the week at $1.3051. Early risk concerns in Asia, on Sino-US tensions and Trump's US stimulus executive order legality, provided downside risk, which saw cable dip to $1.3039. This risk outlook reversed as market reacted to comments from Trump that the Democrats are willing to resume fiscal negotiations and said that the federal gov't could fund weekly Covid-19 jobless benefits in full upon the request of particular state governors. Cable nudged to $1.3076 and was seen meeting some headwind resistance, looking to open Europe around $1.3070. Resistance seen between $1.3070/80, a break to expose $1.3100 ahead of $1.3120. Support $1.3040 ahead of $1.3010/00 then $1.2982. A light data calendar in the UK Monday, focus this week on Tuesday's Jobs data ahead of Wednesday's monthly GDP. IP and Trade also due Wednesday.

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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