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ECB signal to ease at its next Sep....>

MNI (London)
EURO-STERLING: ECB signal to ease at its next Sep meeting prompted an initial
EUR sell react which dropped EUR/GBP to an extended low of Gbp0.8890 Thursday,
just shy of its 1.0% 10-dma envelope base which yesterday came in at Gbp0.8888.
Sharp bounce back, led by EUR/USD's bounce away from the $1.1100 area, took the
cross back up to Gbp0.8959 before it settled around Gbp0.8950 into the close.
Early Asia continued the consolidation around Gbp0.8950 before it nudged up to
Gbp0.8958 ahead of the European open. Stronger sterling sales emerged in Europe
which pushed the rate up to Gbp0.8968, holding just shy of its July falling
resistance, off Jul17 high of Gbp0.9051 (as cable found support at its Jul
rising support at $1.2426). Recovery also holds below its 10-dma, which
currently comes through at Gbp0.8981, which if continues will keep the bearish
tone in place. A break will turn attention back toward Gbp0.9000/10 ahead of
Gbp0.9051. Base of the 1.0% 10-dma envelope today has moved up to Gbp0.8891. 
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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