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GBP Shows Some Buoyancy Despite Negative Brexit Comments

EURGBP
MNI (London)
  • Failure for a break through at Wednesday's PM Johnson/EU vdLeyen dinner acted to weigh on GBP through Thursday trade.
  • EUR/GBP was pushed outside the top end of its 1.0% 10-dma envelope before meeting resistance above Gbp0.9140, settling back within the envelope for the balance of the session.
  • Whilst rate holds above its key technical 10-dma its is seen keeping the underlying tone buoyant, but as has been mentioned in recent bullets the cross tends not to like being outside of the 1.0% for too long.
  • Rate through Asia has been holding up against the 1.0% envelope, currently coming through at Gbp0.9134, backing slightly away in early Europe (current level Gbp0.9123).
  • Market awaits Brexit negotiation developments, PM Johnson comments to prepare for no deal no producing any major negativity, seen as a further negotiating ploy, traders will watch for any move away from talks by the EU side as more important.
  • As it is, talks continue, with Sunday's 'deadline' approaching.
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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