PM Johnson's prorogation of...........>

EURO-STERLING: PM Johnson's prorogation of parliament knocked sterling lower

Wednesday, spiked the cross to Gbp0.9123, as rate extended its recovery further

off its Tuesday low of Gbp0.9016. However, move quickly lost momentum. As

mentioned in the earlier cable bullet, market seen sitting short of sterling

with some holding out hopes that a Brexit deal can be agreed as we head toward

the Oct31 wire.  The move took rate back above its 10-dma (Gbp0.9102) but

quickly corrected below, eased to Gbp0.9045 before it closed around Gbp0.9070.

Rate nudged up to Gbp0.9084 in Asia, as an early knock on effect, but was eased

back to Gbp0.9072 in early Europe trade. Despite Wednesday's move higher the

10-dma continues its down trend, currently comes through at Gbp0.9090. While

rate can hold (and close) below it keeps a retest of the base of the 1.0% 10-dma

envelope alive, currently at Gbp0.9000, though needs to break back below its

broken uptrend (drawn off May06 low), the rate currently resting on this level

at Gbp0.9065. A break above the 10-dma exposes Wednesday's high of Gbp0.9123

ahead of the top of the envelope at Gbp0.9181.