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Positioning ahead of today's BOE......>

EURO-STERLING
MNI (London)
EURO-STERLING: Positioning ahead of today's BOE MPC rate decision seen applying
some early pressure on the pound. Cable has now slipped back under $1.3000,
whilst the cross has edged above its key technical 10-dma (Gbp0.8469 by time) to
Gbp0.8474. Direction to be dictated by the BOE decision, with the vote split of
main interest. A vote for a 25bp cut will weigh further on sterling, and while
cross holds above its 10-dma exposes the top of the 1.0% 10-dma envelope at
Gbp0.8553. Interim resistance noted at GBP0.8480, Gbp0.8492 (50%
Gbp0.8596-0.8388), Gbp0.8517(61.8%). A 7-2 vote to keep rates unchanged will be
seen as hawkish and will spike sterling higher. Support Gbp0.8450/45,
Gbp0.8410/00, Gbp0.8388/84(1.0% envelope base). A 6-3, 5-4 vote for unchanged
seen mildly hawkish.  
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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