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Recovery off Friday's posted YTD low of.......>

CABLE
MNI (London)
CABLE: Recovery off Friday's posted YTD low of $1.2726 faltered Monday at
$1.2851 before rate pressed back down to $1.2740 ahead of the 1600GMT fix. Rate
recovered post fix to $1.2825 before it drifted off to $1.2750 into the close.
Rate extended pullback to $1.2742 in opening Asian trade before slowly
recovering through the balance of the session to $1.2797 into Europe. EUR carry
unwinds have been seen driving EUR/GBP higher, and with month end flow, has
provided the main downside pressure on the pound. The cross was seen meeting
some rally fatigue around the topside of its 3.0% 10-dma envelope (currently
Gbp0.8740), the rate easing off to Gbp0.8708 into Europe. COVID-19 effects
remain the key market driver. Attention this morning on UK Construction PMI,
market median 49.0, though more interest will be placed on Final Services PMI
Wednesday. EZ flash inflation data will draw general attention. 
- Cable support $1.2740, $1.2726. Resistance $1.2780, $1.2825, $1.2851.   
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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