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Needle Still Points South


Yields Bounce as Equities Make New Monthly Highs


Heading North


Bull Rally Accelerates


Economists Survey Raises 2021 CPI Forecast To 4.9%

Continues to Pare Recent Gains

MNI (London)

Cable's recent rally touched an extended high of $1.3482 into the NY open Tuesday before momentum faded and profit take selling began to emerge. This corrective pullback picked up weight on release of strong ISM data which took rate down to $1.3409 before picking up some demand ahead of the 1600BST fix which allowed rate to touch $1.3457. Again momentum faded and rate continued its pullback, easing off to $1.3369, closing the day around $1.3385. Early Asia edged rate on to $1.3403 but struggled to build backa bove the figure. Rate fell back to $1.3366 then settled around $1.3380 through to Europe. Fresh sales now emerging in Europe which has pressed rate to $1.3365, with Monday's early session low of $1.3356 moving into view. Expect some demand into $1.3344(76.4% 1.3301-1.3482), a break to expose $1.3325/20 ahead of stronger interest into $1.3300. Resistance remains above $1.3400, a break of $1.3420 to expose $1.3450 ahead of $1.3482. Focus today on BOE speakers Bailey, Bowe, Brazier, Ramsden and Vlieghe at 1400BST. US ADP at 1415BST in view ahead of Friday's NFP.

MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |