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Rate also reflected sterling's........>

EURO-STERLING
MNI (London)
EURO-STERLING: Rate also reflected sterling's recovery as rate further extended
its corrective pullback away from Friday's high of Gbp0.89925 to Gbp0.8939. The
pound was seen in a better light as weekend press reports suggested PM May had
strong support within the party, along with suggestions she could call a Cabinet
shake up with Foreign Secretary Boris Johnson possibly to be demoted. Sterling
ewas also given a lift by a Times report suggesting that Friday's release of UK
Unit Labour Costs was incorrect and that the ONS could announce a correction
some time today. Speculation that the outcome would provide a stronger argument
for the BOE MPC to hike rates at its next meeting. Next support in the cross
seen at Gbp0.8935 ahead of Gbp0.8910/00. 
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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