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Ongoing Brexit concerns and UK CPI....>

EURO-STERLING
MNI (London)
EURO-STERLING: Ongoing Brexit concerns and UK CPI acted to weigh on sterling
Wednesday, took EUR/GBP to a high of Gbp0.8932. Sterling did manage to perform
some correction into yesterday's close, the cross easing back to Gbp0.8899 as
market reacted to unconfirmed reports that EU27 negotiators and MEPs are mulling
extension to Article 50 over no deal fears. Rate crept back up to Gbp0.8912 in
Asia and was holding steady around Gbp0.8910 into Europe. Wednesday's move has
brought into view the topside of the 1.0% envelope, drawn around the 10-dma,
which today comes in at Gbp0.8949. Chart wise the cross doesn't like to hold
outside of this envelope, the line often seen reversing a trend. UK Retail Sales
at 0830GMT provides the morning's domestic data focus, market median 0.1%mm.
Suggestion that June's data will prove softer than May's strong show, but sales
discounting could provide some support. EUR/GBP support remains around Gbp0.8900
ahead of Gbp0.8874. Resistance Gbp0.8912, Gbp0.8932(Jul18 high) ahead of
Gbp0.8946/49(1.618% swing Gbp0.8890-0.8799/1.0% envelope 10-dma).
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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