Trial now

Maintains A Bullish Tone


Corrective Cycle Still In Play


BanRep Preview – October 29 1900BST/1400ET


Eyeing Near-Term Support

MNI (London)
CABLE: Recovery off the post election pullback low of $1.2905 extended to
$1.3284 Tuesday on month-, year-end flow with month-end models correctly
predicting USD sales at the fixes. Rate touched this high on post fix flow,
before momentum waned and it drifted off to $1.3232, but managed to close the
year at $1.3262. Rate marked a high of $1.3266 in early 2020 trade but was then
pressed down to $1.3203 as traders adjusted positions into the new year
wondering if the pound can hold Tuesday's gains without the month-end demand.
However, rate remained above $1.3200, edging to $1.3224 in early Europe. 
- Support remains into $1.3200/1.3190, this area also holding option expiry
interest at today's NY cut, Gbp772mln of which Gbp667mln are Gbp calls. Break
here to open a deeper pullback to $1.3173(50-mma) and $1.3150.
- EUR/GBP will be watched for any month end demand which could put a dampener on
current sterling gains.  
- UK final Mfg PMI due at 0930GMT(flash 47.4), with some expectation we could
see a slight improvement, median forecast 47.6. 
- US Weekly Jobless Claims and Mfg PMI provide afternoon interest.   
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |