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Political fallout from Brexit.........>

EURO-STERLING
MNI (London)
EURO-STERLING: Political fallout from Brexit continued to place pressure on
sterling Thursday, allowed the cross to edge up toward Wednesday high of
Gbp0.8839, faltered around Gbp0.8838, as rate again met headwinds on approach to
Gbp0.8840(May22, Feb14 high). Sterling gained a reprieve from reports of a
managed stepping down of PM May, relieved some of the political woes, which saw
the cross drop back to Gbp0.8790. A USD sell off into the NY session Thursday
saw a sharp rally in EUR/USD, the move trailed by cable, which in turn
influenced the cross back up Gbp0.8837. Rate consolidated Thursday's moves
within a Gbp0.8826-38 range through Asia, pressure remaining to the upside as
cable continues to trail EUR/USD's firmer tone. 
- Resistance remains into Gbp0.8840/50, a break to expose Gbp0.8865. Support
Gbp0.8825/20 ahead of Gbp0.8800-0.8790. 
- Cross continues to track the topside of its 1.0% 10-dma envelope, currently
coming in at Gbp0.8848.  
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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