Corrective pullback away from.........>

EURO-STERLING: Corrective pullback away from Wednesday's opening high of

Gbp0.8461 extended to Gbp0.8411 into early NY before it edged back to Gbp0.8440

into the close. EUR outpaced sterling in reaction to dovish comments from Fed

Powell, after the FOMC left rates unchanged(as widely expected), which allowed

for the late Wednesday recovery in EUR/GBP. Attention switched back to today's

UK election which prompted a sterling catch up, allowed EUR/GBP to dip back to

Gbp0.8421. Rate recovered to Gbp0.8434 into Europe but fresh sterling demand

again emerged into the European session (as it has done this week) has taken it

back to Gbp0.8425. Rate looks set to hold within an inside range of

Gbp0.8420/40, market awaiting exit polls to emerge following the close of

balloting at 2200GMT tonight. Rate remains within parameters provided by the

base of the 1.0% 10-dma envelope, currently at Gbp0.8380, and the 10-dma at

Gbp0.8464. Should Gbp0.8420 give way to expose recent lows in the

Gbp0.8400/0.8390 area.