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Sterling Buoyant Buts Needs Definite Progress on Trade Negotiations.

GBP
MNI (London)
  • Recovery back above $1.3200, after rate was pressed back to $1.3193 in early Europe, managed to extend the intraday high to $1.3237(Asia high $1.3233) but failed to find the momentum to retest Monday's high of $1.3243.
  • Rate currently trades back around $1.3222.
  • Risk remains favoured and provides for the current buoyant tone.
  • Brexit trade deal hopes have also been given a boost following reports in the Sun, suggesting a trade deal could be agreed by next Tuesday, though with caveats.
  • COVID vaccine also supports risk outlook.
  • Expect resistance between $1.3243/50 ahead of $1.3263(76.4% $1.3312-1.3106). Support remains into $1.3190.
  • BOE Governor speaks at 1400GMT. Dep.Gov Ramsden speaks at 1700GMT.
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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