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Recovery off its PMI react low of.....>

EURO-STERLING
MNI (London)
EURO-STERLING: Recovery off its PMI react low of Gbp0.8388(Jan24) faltered ahead
of Gbp0.8450 Monday before reversing. However, this corrective pullback remained
within the base of its 1.0% 10-dma envelope, touched Gbp0.8408 (envelope base
GBp0.8406) before rate edged back to Gbp0.8447, again holding shy of Gbp0.8450.
Rate touched Gbp0.8435 in Asia before it picked up stronger demand which took
rate through Gbp0.8450, early Europe extending the move on to Gbp0.8457. The
reversal away from the envelope base(by time currently sits at Gbp0.8397) now
exposes the 10-dma at Gbp0.8482. Positioning ahead of Thursday's BOE MPC rate
announcement, the meeting described as live due to recent dovish comments from
MPC members and poor data. Countering this was strong employment data and the
flash PMI's. Today sees release of CBI retail sales data at 100GMT (market
median 5) which may provide some influence being this close to the BOE decision.
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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