Sterling remained under pressure......>

EURO-STERLING: Sterling remained under pressure Friday as the two sides in the

Brexit negotiations gave their reports, both noting a divergence of views,

Barnier noting that the positions of the EU and UK are extremely divergent, and

that the UK side refuse to engage in conversation about governance or

level-playing field

provisions. EUR/GBP, which had been holding comfortably within its 1.0% 10-dma

envelope in early trading, was forced through the topside (current Gbp0.8881) to

a high of Gbp0.8933 ahead of the 1600BST fix. Pullbacks so far have remained

fairly shallow, meeting support around Gbp0.8915. If rate holds above the

topside of the 1.0% envelope (which should move higher by time for Monday) it

will bring the topside of the 2.0% envelope into view, currently at Gbp0.8969. A

break here to then expose Gbp0.8994(38.2% retrace of the move down from

Gbp0.9500 to Gbp0.8682 (Mar19-Apr14). If rate can break back into its 1.0%

envelope it will relieve the current upside pressure.