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Rate reversed away from its 1.0%......>

MNI (London)
EURO-STERLING: Rate reversed away from its 1.0% envelope top Friday (Gbp0.8890),
and with the help of a stronger than expected UK Q1 GDP, allowed rate to extend
its pullback to Gbp0.8836 ahead of the weekly close. Rate touched a low of
Gbp0.8832 as early Asian markets reacted to the resignation of Germany's
Seehofer as CSU party chairman and Merkel's Interior Minister, but quickly
jumped back to Gbp0.8855 as sterling came under pressure from weekend Brexit
headlines. Rate has since settled around Gbp0.8840 into early Europe. The
topside 1.0% envelope, drawn around the 10-dma, has today moved up to Gbp0.8897,
whilst the 10-dma is currently around Gbp0.8808. First day of the new month may
see some hangover of month-end demand, though this interest was well countered
on Friday. Resistance now seen at Gbp0.8886/90 ahead of Gbp0.8900. Support
Gbp0.8832/21. UK Manufacturing PMI due this morning at 0830GMT, median forecast
54.0 vs 54.4 last. Market to be on headline watch for German political situation
as well as Brexit. 
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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