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No (Brexit) News Seems to be Good News for Sterling

CABLE
MNI (London)
  • Cable eased to a low of $1.2881 Thursday as rate tracked EUR/USD slippage in reaction to a generally stronger USD and a dovish ECB.
  • Rate recovered in post fix trade to $1.2936, closing the day around $1.2930.
  • Rate consolidated within $1.2920/40 in early Asia before getting pressed down to $1.2399 into Europe, move again led by EUR/USD, before edging back to $1.2928.
  • Noticeable that Brexit headlines have quietened which is helping market lean toward a positive outcome in trade talks, in turn provides sterling with underlying buoyancy.
  • EUR/GBP remains below its key 10-dma(current Gbp0.9057) which also adds to this view.
  • Month-end flows, approaching US election seen main drivers, with COVID spread/counter action in focus.
  • Support seen around $1.2900 ahead of $1.2880, $1.2865/60 and $1.2850. Resistance $1.2940/50, $1.2980, $1.3000, $1.3025.
  • MNI Techs: The print below 1.2940 suggests scope for a deeper corrective pullback exposing 1.2863, Oct 14 low, and a key support. Price action has defined initial firm resistance at 1.3080, Oct 27 high. A move back above this hurdle would ease bearish pressure and open 1.3177.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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