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Month-end Flows to Influence

CABLE
MNI (London)

Corrective pullback from Monday's high of $1.2930 extended in opening Europe trade Wednesday as rate breaks below Tuesday's low of $1.2823 to $1.2820. EUR/GBP also reflects sterling's soft feel as it makes a show above its key 10-dma (current Gbp0.9144) though drifts back below at writing. Cable currently trades around $1.2830. Month-end flow expected to see USD demand emerge at today's fixes, which with cable's low liquidity could act to influence the rate more. Support seen into $1.2810/00 ahead of $1.2780 ahead of $1.2760/50. Resistance $1.2870/80, with expected headwinds at and above $1.2900.

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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