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MNI (London)
CABLE: Managed to track EUR/USD's stronger rally, driven by the release of
better than expected US data which in turn boosted risk outlook via equity
market performance. Cable pushed up to $1.2343 as EUR/GBP again faltered ahead
of its resistance into Gbp0.9000. Rate retains a buoyant tone as Europe closes,
currently around $1.2335. A break above $1.2343 to expose recent highs at
$1.2354-63 sitting close behind, as well as the 50% retrace of the move down
from $1.2643 to $1.2076 (Apr30-May18) at $1.2360 which remains relevant. Above
here to expose $1.2377(May12 high). Support now seen between $1.2310/00 ahead of
$1.2280 and $1.2250. A break of Gbp0.9000 to relieve some of the current upside
pressure in cable, to expose the topside of its 1.0% 10-dma envelope, currently
at Gbp0.9040. Month-end Friday and early predictions of USD sales at the fixes.
Into next week market will watch weekend press, following this week's Dominic
Cummings acknowledgment of travelling during lockdown, with Brexit negotiations
to begin again Monday through to Friday. UK Brexit chief negotiator David Frost
speaking to the House of Lords earlier stated that negotiations are still some
distance away from even a broad outline of an agreement.
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |