Free Trial

Shock resignation of Chancellor.......>

EURO-STERLING
MNI (London)
EURO-STERLING: Shock resignation of Chancellor Javid during PM Johnson's Cabinet
reshuffle, then appointment of Chief Secretary to the Treasury Rishi Sunak,
which was seen potentially loosening Treasury purse strings, boosted sterling,
allowed EUR/GBP to break under recent low of Gbp0.8387, moved through the base
of its 1.0% 10-dma envelope (Gbp0.8356), stalled just ahead of its 1.618% swing
target level of Gbp0.8294 (based on the recent recovery from Gbp0.8387 to
0.8538). Rate edged back to Gbp0.8320 before it settled around Gbp0.8310 into
the close. Rate consolidated the move through Asia within a range of
Gbp0.8300/15, favouring the base of that range into Europe. 
- Rate remains below the base of its 10-dma envelope, by time has eased to
Gbp0.8346, and as mentioned Thursday, the line is not a support in itself but
rate tends not to like remaining outside of this envelope for too long. However,
current level does leave the base of the 2.0% envelope exposed at Gbp0.8262. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.