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Squeezed to a fresh pullback low of...>

EURO-STERLING
MNI (London)
EURO-STERLING: Squeezed to a fresh pullback low of Gbp0.8848 Thursday before
rate recovered to Gbp0.8886 post London fix then settled around Gbp0.8875 into
the close. Consolidation in Asia saw rate confined to a relatively tight range
of Gbp0.8872-81 with early Europe showing some demand interest which has edged
topside to Gbp0.8885. Hopes that, despite Thursday's knock back for PM May's
Chequers plan for Brexit, a deal will be eventually worked out is seen keeping
sterling buoyancy alive, with cable also aided by general risk appetite helping
the pound hold gains versus the USD and JPY. Bid process for Sky expected to
move to an auction process if no winner announced (C21 Fox and Comcast compete),
company valued at around Gbp26bn and also seen providing the pound with support.
Support seen at Gbp0.8875/65 ahead of Gbp0.8848. The base of the 10-dma 1.0%
envelope today moves down to Gbp0.8804. Resistance Gbp0.8886/90. 
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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