Cross made another visit outside of...>

EURO-STERLING: Cross made another visit outside of its 1.0% 10-dma envelope in

early European trade, as sterling trailed EUR's recovery boost on the back of

positive noises as regards a possible break through in the EC summit regarding

the COVID-19 recovery plan. EUR/USD touched a 4-month high of $1.1468 only to

reverse as its was announced the summit would reconvene later in the day.

Sterling continued bid, as equity markets performed well, boosting risk, with

anticipation for the Oxford vaccine results(though release of early positive

results had little noticeable effect). EUR/GBP eased back into the 1.0%

envelope, from a high of Gbp0.9138, the long squeeze driving the rate back

toward its key 10-dma, currently at Gbp0.9026, touching a low of Gbp0.9031

before it settled around Gbp0.9040 during the NY afternoon.

- Whilst rate holds above its 10-dma is seen keeping the underlying buoyant tone

in place, a break below to expose the base of the 1.0% envelope at Gbp0.8936.