Free Trial

Cross made another show outside of....>

EURO-STERLING
MNI (London)
EURO-STERLING: Cross made another show outside of the base of its 1.0% 10-dma
envelope Thursday, with rate continuing to to hold around this line in Friday(by
time currently at Gbp0.8418) trade. Rate managed to extend recent easing to
Gbp0.8410(fresh YTD low) into Europe, currently trades around Gbp0.8418. Looking
at the cross sterling is looking firm as attention is set on today's release of
flash PMI's. Market saw the improvement from last flash PMI's to the final
release, the 15% of late responders coming in post election. Today's number will
be post election with hopes that that sentiment will carry over. Should the data
come in stronger than forecast it should produce a further boost for sterling as
markets will push back further the outlook for a rate cut at next week's BOE MPC
announcement (Jan30). However, as EUR/GBP is sitting on its envelope base it may
suggest that market could be open to data disappointment.
- Support Gbp0.8410/00, Gbp0.8380/70. Resistance Gbp0.8435, Gbp0.8460. 10-dma
currently at Gbp0.8503, while below keeps outlook bearish.   
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.