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Having touched the base of its 2.0%...>

EURO-STERLING
MNI (London)
EURO-STERLING: Having touched the base of its 2.0% 10-dma envelope, following
the initial positive sterling react to the Conservative election win, the cross
has since bounced away, moving back into its favoured 1.0% 10-dma envelope, but
seen meeting resistance at its 10-dma, currently around Gbp0.8420. Sterling was
given a knock in the US/Asia transition on reports PM Johnson could legislate to
prevent a transition phase extension, basically putting a hard Brexit back on
the negotiating table. Whilst rate remains below its 10-dma it keeps the
underlying tone bearish, the base of the 1.0% envelope currently coming through
at Gbp0.8337. A break above the 10-dma will bring the topside of the 1.0%
envelope back into play at GBp0.8506. Interim resistance noted into Gbp0.8420,
Gbp0.8460/70.   
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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