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Sterling Demand Overcomes EUR/GBP Fix Buy Orders

CABLE
MNI (London)

USD's earlier recovery attempt was fairly muted against the pound, allowing EUR/GBP to get pressed to a low of Gbp0.9017 as EUR/USD took a negative knock from poor Germany GDP data. Cable recovered off a low of $1.2945 through the balance of the European morning, disregarded US data before the USD took a general knock from Trump tweets concerning the November election which took rate on to $1.3072. Rate dropped back to $1.3021 as EUR/GBP saw decent demand through the fix, which took it back to Gbp0.9047, but dip quickly attracted demand that lifted cable to an extended high of $1.3083. Some reports already suggest rally (which has lasted for 10 days now) could extend to $1.3200(Mar9 high) though others suggest that moves are beginning to look 'toppy', though Friday's fixes could provide for another round of USD sales before possible corrective pullbacks next week? Resistance seen into $1.3100/05 ahead of $1.3150/60. Support $1.3000, $1.2950.

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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