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Free AccessMentioned 1.0% envelope (drawn........>
EURO-STERLING: Mentioned 1.0% envelope (drawn around the 10-dma) managed to keep
rate contained Monday, cross touched a high of Gbp0.8827 just below the envelope
top at Gbp0.8833. Rate then reversed, touched a low of Gbp0.8765 ahead of the
month-end London fix before it edged back to the Gbp0.8790 area, closing the
day/month around Gbp0.8775. Consolidation in Asia saw rate contained within a
tight range of Gbp0.8769-78. There is a chance of further month-end demand to
emerge in this new month which could keep rate buoyed. However, support remains
at Gbp0.8765, a break to expose the 10-dma that today comes through at
Gbp0.8740. Resistance remains around Gbp0.8790, a break of Gbp0.8840 to expose
Monday's high of Gbp0.8827 ahead of the envelope top, which today has moved up
to Gbp0.8840. Most European centres closed for the May Day holiday. UK
Manufacturing PMI at 0830GMT provides the morning focus.
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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.