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Rate saw a low of Gbp0.8886...........>

EURO-STERLING
MNI (London)
EURO-STERLING: Rate saw a low of Gbp0.8886 Thursday, as the EUR dropped in
reaction to the announced ECB rate cut, but EUR recovery saw it bounce to post
fresh intraday highs of Gbp0.8973 into the close. Asia extended this move to
Gbp0.8974 before it faltered and slowly began to drift lower. This move lower
gained a little more momentum into Europe, the rate easing to Gbp0.8954 at
writing. PM Johnson's move to use no-deal in negotiations with the EU for Brexit
seen facing more hurdles, which along with N.Ireland's DUP said to be opening a
door to allow some resolution to the Ireland backstop impasse, is seen providing
sterling with some buoyancy. Cross continues to hold within the base of its 1.0%
10-dma envelope(current Gbp0.8895) and its 10-dma (current Gbp0.8985). Whilst
rate remains below the latter it is seen keeping the underlying outlook bearish.
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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