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Sharp downside correction Tuesday, from.......>

CABLE
MNI (London)
CABLE: Sharp downside correction Tuesday, from $1.4244 to $1.4066, seemed to be
initially triggered by strong demand from around 0800BST in Eur/Gbp. Few cited
the Novartis sale to GSK of its joint venture share in consumer healthcare for
$13bn cash. Eur/Gbp spiked from Gbp0.8750 to Gbp0.8790 into the 0900BST fix
before it edged on to Gbp0.8798. Cable managed to recover to $1.4119 in NY,
though this move was seen hampered by Usd recovery. Eur/Gbp was pressed back,
settled between Gbp0.8755/70 ahead of the close. Sterling recovery given an
added boost in Asia as traders reacted to a Times report suggesting fresh
solutions for the post Brexit Irish border. Cable continued to claw its way
higher, edged on to $1.4200 into early Europe. Eur/Gbp was pressed to Gbp0.8736,
breaking under Tuesday's low of Gbp0.8745. Sterling continues to enjoy an
underlying buoyant tone, despite the recent set back and chance of further month
end sterling sales (models suggest Usd buys to be seen at Thursday fixes with
chance of further Eur/Gbp demand to emerge. 
* BOE Agents Summary of Conditions at 0830GMT, earnings component may be of
interest. CBI Trades 1000GMT. 
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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