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EU Barnier comments Monday............>

EURO-STERLING
MNI (London)
EURO-STERLING: EU Barnier comments Monday suggesting an initial Brexit deal
possible within 6-8 weeks boosted sterling across the board and allowed EUR/GBP
to move below Gbp0.8900, as well as probe outside of its 10-dma 1.0% envelope.
Rate found support at Gbp0.8895(envelope base at time was Gbp0.8898) but had
recovered back above Gbp0.8900 into Monday's close. Continued sterling strength
in Asia allowed cross to extend the recent pullback to Gbp0.8890, the base of
the 10-dma 1.0% envelope easing down to Gbp0.8878 by time. Further support noted
between Gbp0.8860/50. UK Employment Report today at 0830GMT provides domestic
data interest. Whilst we see more conciliatory Brexit tones from EU it should
keep sterling buoyed, but headlines must be watched. Resistance Gbp0.8920. 
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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