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Risk aversion pressure on sterling....>

EURO-STERLING
MNI (London)
EURO-STERLING: Risk aversion pressure on sterling acted to take EUR/GBP back
above Gbp0.9000, the break of Gbp0.9024 exposing the top of the 1.0% 10-dma
envelope (currently at Gbp0.9035) before topping out at Gbp0.9042. Cable meeting
decent support into $1.2400 provided some respite from the day's risk driven
downside pressure, in turn allowed the cross to ease back to Gbp0.9015, as well
as moving back within its 1.0% envelope. Whilst rate holds above its 10-dma
(current Gbp0.8946) seen keeping the underlying tone positive. However, failure
to build on the earlier move outside of the 1.0% envelope could allow for an
easing back toward the 10-dma. 
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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