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EUR/GBP has stuck to a 20 pip range...>

EURO-STERLING
EURO-STERLING: EUR/GBP has stuck to a 20 pip range in early dealing this week,
last virtually unchanged at GBP0.8880. - The rate has struggled to generate any
momentum on the back of the weekend headlines surrounding Brexit, Italy/Italian
sovereign ratings and the latest German state election.
- This comes after the rate ran into resistance ahead of its 50-DMA (GBP0.8897)
on Friday, with further resistance noted into GBP0.8900. Conversely, bears
target a break of up trendline support/the 200-DMA (GBP0.8843/36) to shift the
focus to the downside.
- There is plenty of risk on the EZ & UK dockets this week. From the Eurozone,
GDP & labour mkt data is due Weds, with CPI due Thurs. Elsewhere, ECB's Visco &
Italy's FinMin Tria will speak on Weds. UK focus this week falls on the BoE
MonPol decision & inflation report due Thursday, as well as Gov. Carney's
subsequent press conference. UK manufacturing PMI will also provide some
interest on Thursday. As a reminder, C'llr Hammond releases the budget later
today. Brexit headlines will likely provide the driving impetus for the rate, as
ever.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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