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Cable trailed EUR's recovery versus the USD...>

CABLE
MNI (London)
CABLE: Cable trailed EUR's recovery versus the USD Thursday, which allowed
EUR/GBP to edge back above Gbp0.90 and on to a high of Gbp0.9061 Thursday. The
cross did ease back to Gbp0.9037 in late NY, touched Gbp0.9035 in early Asia
only to bounce back before consolidating around Gbp0.9045 into Europe. Cable did
see a high Thursday of $1.2675 only to drop back to $1.2625 post 1600GMT fix.
Recovery into the close extended in Asia as rate edged on to $1.2673, remaining
buoyed above $1.2660 into Europe. Resistance seen at $1.2673/75, a break to
expose $1.2700 ahead of $1.2715/20. Support $1.2660/50 ahead of $1.2635/25. 
- A light UK data calendar. USD plays remain key. Current downside USD pressure
seen as a market reaction to current US Govt shutdown and US equity market
volatility. However, month-end models suggest USD demand to emerge at Monday's
fixes, along with SOMA interest($18.2bn). Potential Brexit headlines keep
markets wary. 
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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