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Sharp pullback from Tuesday high of...>

EURO-STERLING
MNI (London)
EURO-STERLING: Sharp pullback from Tuesday high of Gbp0.8789 to Gbp0.8758, as
sterling was given a boost by MPC Vlieghe comments on his rate outlook, shook
out any short term speculators as rate eventually settled around Gbp0.8770 into
the close. Rate edged to a high in Asia of Gbp0.8775 only to drop back to
Gbp0.8763 as the risk aversion sell off in Asia saw EUR/USD outpace a pullback
in cable. Cross has since recovered, touched a fresh intraday high of Gbp0.8776
in early Europe and was holding firm at writing. Resistance remains at Tuesday's
high of Gbp0.8789 with stronger interest noted between Gbp0.8795/0.8800. Support
Gbp0.8765/55. Domestic focus today on UK CPI release at 0830GMT(headline CPI
expected to hold steady at 2.5%). Release of EZ flash PMI's from 0700GMT(Fr
0700GMT, De 0730GMT, EZ 0800GMT) could provide some directional impetus ahead. 
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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