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###POV EURGBP: DOVISH ECB MINUTES.....>

EURO-STERLING
EURO-STERLING: ###POV EURGBP: DOVISH ECB MINUTES POINTS TO FURTHER EURGBP
WEAKNESS
- EURGBP closed below 0.8700 yesterday for the first time since December. The
release of dovish ECB minutes touched 11 month lows of 0.8643 and could
encounter further pressure.
- Strong seasonal trends are starting to unfold which has seen GBPUSD post gains
every April since 2005, positive technical signals suggest there remains scope
to extend the rally.
- The MNI FX Technical Signal Monitor is showing a near clean sweep of bearish
EURGBP signals. MNI FX PI is also highlighting evidence of GBP long position
building.
- EURGBP 1m risk reversals are approaching the equity meltdown February lows
which would mark the most bullish sentiment toward GBP against the EUR in option
markets since September last year.
RISK - Negative Brexit headlines could dampen GBP strength, UK data release
heavy next week and could also influence.

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