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Slowly recouping overnight losses, which...>

STERLING
MNI (London)
STERLING: Slowly recouping overnight losses, which had seen the pound under
further Brexit related pressure led by strong sales of Gbp/JPY. Break of $1.2200
in cable, which was seen triggering further sales in this pair, GBP/JPY
targeting, and taking out its Jan3 low of Gbp131.70 to touch Y131.61, while
EUR/GBP extended its rise before meeting resistance at the top of its 2.0%
10-dma envelope at Gbp0.9190. Thin Asian conditions linked to the deeper
sterling losses, though Europe looking reluctant to correct the overnight moves.
Cable edged to $1.2159, currently around $1.2148, GBP/JPY managed to claw its
way back up to Y132.07, currently around Y131.90, while EUR/GBP trades back at
Gbp0.9167. 
- Month end approaching and EUR/GBP could draw its usual demand interest, though
this might see some counter from month-end cable demand. Citi's prelim month-end
model, based on assets, suggests cable demand could emerge. Citi release their
final model call Wednesday.   
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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