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Sterling seen settled after the early.........>

CABLE
MNI (London)
CABLE: Sterling seen settled after the early European morning gyrations. Cable
touched a high of $1.3158 before it reversed sharply down to $1.3113 in a UST
yield led move. Cable drop outpaced Eur/Usd which in turn allowed Eur/Gbp to
bounce back from Gbp0.8850 to Gbp0.8871. Rally in the cross met decent sell
interest which dropped it to Gbp0.8846 which allowed cable to recover to
$1.3140/50. Attention now on UK IP/Mfg and Trade data on the half hour. Market
medians IP 0.3%mm, 1.9%yy, Mfg 0.3%mm, 2.4%yy. Trade balance median seen at
-12.8bn. Strong sell interest has been noted this week into the $1.3180 area,
countered by strong demand in the $1.3085 area. 
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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