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Rate managed to touch an extended.....>

EURO-STERLING
MNI (London)
EURO-STERLING: Rate managed to touch an extended low of Gbp0.8545 into early NY
trade Thursday before sterling gave back earlier gains which allowed the cross
to edge back toward its key technical 10-dma, yesterday at Gbp0.8572, making a
brief show above but closed the day below around Gbp0.8566. The 10-dma has moved
down to Gbp0.8567 Friday with rate so far holding a tight range around. As
mentioned in recent sessions, if rate can break and clear above this area it has
the potential to open a move toward the topside of its 1.0% 10-dma envelope,
currently at Gbp0.8652. Failure to make this break, and close above, will keep
underlying tone bearish. EZ flash PMI's and first major speech by new ECB
President Lagarde will be in focus along with the first release of flash UK PMI
data. Election/Brexit news remains the key driver for sterling. 
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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