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Slipped back outside the base of......>

EURO-STERLING
MNI (London)
EURO-STERLING: Slipped back outside the base of its 1.0% 10-dma envelope
Tuesday, as sterling gained a boost on the back of Merkel's conciliatory tone
concerning the Irish Backstop (main bargaining point in the Brexit process).
Rate touched a low of Gbp0.9101 (1.0% envelope base Tuesday Gbp0.9119), just shy
of Friday's low of Gbp0.9090, before it recovered to Gbp0.9145 before it settled
around Gbp0.9120 into the close. Rate consolidated between Gbp0.9116/26 through
Asia before sterling came under pressure in early Europe. Rate has edged to
Gbp0.9144 where it again met headwind resistance. Whilst rate holds back within
the envelope it exposes the 10-dma at Gbp0.9202, though with interim resistance
levels of Gbp0.9165 and Gbp0.9184 ahead. 1.0% envelope base currently comes
through at Gbp0.9110, a break to open a move back to Gbp0.9101 ahead of
Gbp0.9090.   
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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