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Extended the recovery off the May6....>

EURO-STERLING
MNI (London)
EURO-STERLING: Extended the recovery off the May6 low of Gbp0.8490 to touch
Gbp0.8850 last Friday (May24) before the cross corrected back to Gbp0.8805 as
markets reacted positively to the announced stepping down of PM May (Jun7). This
corrective pullback extended to Gbp0.8790 in thin Monday trade before bouncing
back to Gbp0.8835, then settled around Gbp0.8825 into the close. Consolidation
in Asia saw rate confined to a tight Gbp0.8822-28 range, with early Europe
providing some added downside weight as rate eases to Gbp0.8819. 
- Cross had been tracking the topside of its 1.0% 10-dma envelope over the last
2-weeks but has now diverted back within. Topside today currently at Gbp0.8877
with the 10-dma itself at Gbp0.8789. The base of the envelope currently at
Gbp0.8701.  
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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