Sterling reversed early morning.......>

EURO-STERLING: Sterling reversed early morning losses Wednesday as market

positioned for last night's much awaited YouGov MRP poll (seen closest to the

result of the election in 2017). Poll headline suggested that the Conservative

Party would win a majority of 68 seats at the Dec12 election, which would make

for an easier passage for the Withdrawl Bill. EUR/GBP, which had seen a high of

Gbp0.8584 in early Europe trade Wednesday, dropped back to Gb0.8520 ahead of the

poll release(2200GMT). Sterling react saw rate drop to Gbp0.8499 into Asia

before it recovered to Gbp0.8520 on profit take buys. Sterling retained a firm

feel and further demand allowed the cross to drift off to the Gbp0.8504/08 area.

- Move sees cross below its 10-dma, currently at Gbp0.8553, which will further

support the current bearish feel. Base of the 1.0% 10-dma envelope comes through

at Gbp0.8468.