Free Trial

COVID Lockdown Counters Brexit Hopes.

CABLE
MNI (London)
  • Confirmation that England will move into a 4-week lock down from Wednesday night(until Dec2), along with comments from Minister Michael Gove that this could be extended, depending on the effect on COVID spread, acted to counter sterling recovery hopes.
  • PM Johnson to face opposition in parliament from some Conservative MP's but likely to pass with Labour support.
  • Cable retained a heavy feel despite reports suggesting a Brexit trade agreement could be signed by the November deadline.
  • Cable held above $1.2900 through the early Asian session, but recovery efforts were countered at $1.2940.
  • However, stronger sterling sales emerged ahead of the European open to press rate down to $1.2894 but picked up some demand interest into Europe, the rate then edged back to $1.2909.
  • Cable retains a soggy feel, along with EUR/USD, but with EUR/GBP holding below its 10-dma (Gbp0.9047) keeps some underlying buoyancy in place.
  • UK final Mfg PMI data at 0930GMT(Svcs/Comp PMI Wednesday) .
  • BOE Monetary Policy announcement Nov5. No rate change but an increase in QE widely expected.
  • MNI Techs: Breach of 1.2940, Oct 21 low, suggests scope for a deeper pullback with attention on 1.2863, Oct 14 low, and a key short-term support. Clearance of this level would open 1.2794, a Fibonacci retracement. Price action has defined initial firm resistance at 1.3080, Oct 27 high.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.