MNI China Daily Summary: Wednesday, July 10

MNI BRIEF: China To Investigate EU Trade Actions

MNI BRIEF: China June CPI Hits Three Month Low

MNI: PBOC Conducts CNY2 Bln Via OMO Weds; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

MNI: PBOC Sets Yuan Parity Higher At 7.1342 Weds; -0.53% Y/Y

US EIA: CRUDE OIL STOCKS EX SPR -3.44M TO 445.1M JUL 05 WK

MNI:US MAY WHOLESALE INV 0.6%; SALES 0.4%

MNI: US MBA: MARKET COMPOSITE -0.2% SA THRU JUL 05 WK

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

GBP Strength Keeps Pressure on EUR/GBP

EURGBP
MNI (London)
  • Wednesday's break of support at Gbp0.8880 saw a quick drop through what was expected to be stronger support between Gbp0.8866/61 before it based around the base of its 1.0% 10-dma envelope at Gbp0.8838.
  • The 1.0% envelope parameters though are not seen as support/resistance levels but it has been noted that the cross does not like to be outside for too long.
  • Rate recovered to Gbp0.8882 as GBP pared back gains ahead of the 1600GMT fix then settled around Gbp0.8865.
  • Asia consolidated Wednesday's move between Gbp0.8860/70 before GBP came under fresh demand interest into Europe which pressed rate down to Gbp0.8852.
  • Support remains around the Gbp0.8840 level, a break to again expose the base of the envelope, which by time currently comes through at Gbp0.8821. Resistance now seen above Gbp0.8880.
  • Whilst rate holds below its 10-dma (current Gbp0.8910) seen retaining an underlying bearish feel.
  • ECB MonPol 1245GMT/Lagarde press conference 1330GMT in focus
  • MNI Techs: EURGBP traded lower yesterday and cleared the key support between 0.8867 and 0.8861. These mark the Nov 23 and Nov 11 lows and the breach represents a significant technical breakout. The break lower reinforces underlying bearish conditions and paves the way for a move towards 0.8800 and 0.8784. On the upside, a key short-term resistance has been defined at 0.8925 where a break is required to ease the bearish pressure. Heavy!
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.