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Mixed Monday, But Outlook Turning More Positive


BLOCK, 5Y Sale


Chunky Midday Put Volume


Dollar Index Hits Session Lows, Turns Negative

Technical Support at $1.3284 Holds.

MNI (London)

Found decent support Wednesday at $1.3284(Sep02 low, Dec31-2019 high, Aug27 high) into the 1600BST fix, as the corrective pullback away from Tuesday's high of $1.3482 extended during the general USD correction. However, rate was able to bounce post fix to $1.3354 into the close. Early consolidation in Asia before USD demand emerged again. Rate met initial support at $1.3322, bounced to $1.3339 before coming under renewed downside pressure (tracked EUR/USD's reaction to reported comments that ECB officials concerned about recent strength of the EUR), which took rate back below $1.3300 and toward Wednesday's low. Rate touched $1.3286 but buyers emerged into Europe, edged rate back to $1.3302 but so far struggles to gain a toe hold back above the figure. Support remains into $1.3284/80, a break to expose $1.3250 ahead of $1.3220/15. Resistance $1.3320, $1.3360/70. Final Services PMI data from the UK due at 0930BST, flash 60.1, provides the morning's domestic focus. US trade and weekly jobless claims at 1330BST ahead of US Svcs PMI and non-Mfg ISM at 1445-1500BST respectively. BOE Bailey and Ramsden make an appearance at 1500BST.

MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |