Cross struggled to hold back above....>

EURO-STERLING: Cross struggled to hold back above Gbp0.9000 Tuesday, the rate

touched Gbp0.9005 before it fell back to Gbp0.8953 before it closed the day back

above Gbp0.8960. Early Asia saw rate post a high of Gbp0.8968 before it eased

off again, the rate easing to Gbp0.8956 into Europe. The recent upside momentum,

which had taken the cross to a high of Gbp0.9051 (Jul17), was seen to be slowing

with the watched 1.0% envelope, drawn around the 10-dma, has now turned lower.

Rate has held back below its 10-dma for the last 4 sessions, the line currently

coming through at Gbp0.8988. This should make a move toward the base of the

envelope easier, that line currently at Gbp0.8898, though needs to break below

Gbp0.8920 to be convinced. ECB meeting Thursday, with its forecast easing bias,

currently seen outweighing Brexit risk, though with Johnson to become the new PM

this afternoon that could change. Brexit headlines likely to again be the main

driver for sterling.