Cross touched a low Thursday of.......>

EURO-STERLING: Cross touched a low Thursday of Gbp0.8477 into the BOE MPC MonPol

announcement but accompanying comments were viewed as opening the door to rates

cuts in 2020 and provided the momentum to take rate outside of the topside of

its 1.0% 10-dma envelope at Gbp0.8524 and on to an eventual high of Gbp0.8557.

Sterling remained on the back foot into the close (Gbp0.8550) but that outlook

changed into Asia. Sellers emerged, plenty of bank commentary suggesting current

sterling dip could be a good entry point for long sterling positions, which took

the cross back to Gbp0.8533 (and back within its 1.0% envelope, topside

currently at Gbp0.8537). However, the sterling recovery was met by another wave

of selling which popped rate back up to Gbp0.8545(0700GMT fix related?). Rate

tends not to like to be outside of its 1.0% envelope for too long, however,

whilst it holds it exposes the topside of its 2.0% envelope, currently coming in

at Gbp0.8621. 10-dma Gbp0.8452. 

- Politics remains the key driver for sterling direction, debate on PM Johnson's

Withdrawl Bill will be watched.