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Cable tracked EUR/USD's stronger reaction.....>

MNI (London)
CABLE: Cable tracked EUR/USD's stronger reaction to the FOMC announcement
Wednesday, FOMC cut the expected 25bps but was seen watering down hopes for
another cut following close behind which provided a boost for the USD. Cable,
which had seen a recovery high of $1.2250 into the 1600BST fix, dropped to
$1.2134 before it settled around $1.2160 into the close. Rate continued to hold
around $1.2160 in early Asia before fresh USD demand emerged, led by USD/JPY's
move up through Y109.00, with cable again tracking EUR/USD slippage as it
dropped to a fresh YTD low of $1.2101. Barrier interest has been strongly
suggested in place at the figure, protective buying ahead allowed rate to nudge
back to $1.2137 before it settled between $1.2120-30 into Europe. 
- UK CIPS Mfg PMI provides a curtain raiser ahead of today BOE MPC announcement.
Market expecting the Bank to keep rate son hold, the accompanying statement of
more interest as market expects Bank to move away from suggesting next move
likely to be up to neutral/dovish on uncertain Brexit developments.  
- Support into $1.2100, break exposes 2.0% 10-dma base ahead of $1.2070 and
$1.2050. Resistance $1.2150/60, $1.2176.
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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