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Cross saw an extended low of..........>

EURO-STERLING
MNI (London)
EURO-STERLING: Cross saw an extended low of Gbp0.8938 on Friday as pressure on
EUR/USD outpaced cable slippage (SOMA seemingly more than countered month-end
USD sell interest). Rate recovered toward Gbp0.8960 ahead of the Friday's close.
Sterling came under pressure in early, thin Asian trading conditions as traders
reacted to weekend reported comments from UK PM May(rules out second referendum)
and EU Barnier rejecting the Chequers Plan. Rate spiked to Gbp0.8987 then
settled between Gbp0.8970-75 through the balance of the overnight session. Fresh
pressure on sterling into early Europe has seen the cross extend its recovery to
Gbp0.8994, currently around Gbp0.8992. Corrective rally however remains below
its 10-dma, currently at Gbp0.9004. 1.0% envelope around this line comes in at
Gbp0.8914-0.9094. Resistance seen into Gbp0.9000 ahead of Gbp0.9020. Support
Gbp0.8948/38. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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