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Hugs Gbp0.9000 Early Europe. EU Barnier in Focus.

EURGBP
MNI (London)
  • GBP/USD demand at early Tuesday fixes outpaced EUR/USD gains and allowed EUR/GBP to extend away from the Gbp0.9000 area to touch its key technical 10-dma (current Gbp0.8939)
  • The 10-dma contained before the cross bounced back on general EUR strength, touched Gbp0.9007 then dropped to Gbp0.8961 at the 1600GMT fix.
  • The stronger close in EUR/USD saw the cross edge back to Gbp0.8995 into the close.
  • Trade in Asia found an early base at Gbp0.8985 before EUR strength lift rate to settle around Gbp0.9000 through to the Europe open.
  • GBP has picked up some demand interest in early Europe, cushioned an opening dip in GBP/USD, the cross so far respecting the Asian range.
  • Whilst rate holds above its 10-dma seen keeping the underlying tone buoyant. A clear above Gbp0.9000 to expose the top of the 1.0% 10-dma envelope, currently at Gbp0.9029.
  • Brexit trade negotiations continue in focus for GBP direction. EU Barnier to address EU leaders this morning though some reservation about possible EU concessions.
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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