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Hugs Key 10-dma(Gbp0.8973)

EURGBP
MNI (London)
  • Cross seen holding a tight range around its technically key 10-dma, currently at Gbp0.8973 with USD plays providing main market interest.
  • Sterling overall is trading with an underlying buoyant tone linked to raised hopes for a Brexit trade deal, the Sun earlier suggesting that UK negotiator Frost has informed PM Johnson that a deal could be achieved by next Tuesday, though with caveats.
  • While the cross holds around its 10-dma is seen awaiting fresh directional impetus. A move away to the topside to expose the top of its 1.0% 10-dma envelope, currently coming through at Gbp0.9063. A break away to the downside exposes the base of the envelope at Gbp0.8884, with stronger support lower down into Gbp0.8860.
  • BOE Bailey speaks at 1115GMT, not at 1400GMT as earlier mentioned in calendars(and repeated in earlier bullets). BOE Dep Gov Ramsden speaks at 1700GMT.
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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