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CABLE: The old adage to buy a currency when that centre is on holiday seemed to
play out again on Friday (like it did the previous Friday with the EUR) as cable
managed to push up to $1.2467. However, this enthusiasm for sterling proved
short lived as a returning London market took advantage of the better levels to
sell the pound across the board, cable easing to $1.2322 ahead of NY, whilst
EUR/GBP, having cleared back above its key 10-dma (current Gbp0.8741) edged to
Gbp0.8780. Early NY applied further pressure to take cable to an extended low of
$1.2383, as EUR/GBP popped to Gbp0.8806. A retreating EUR/GBP allowed cable to
recover to $1.2363, aided in part by an easing in UST yields, but comments from
Atlanta Fed Bostic, that he considers
negative rates a weaker tool for managing the economy, reversed this outlook and
USD recovered. However, the EUR felt the main pressure which allowed cable to
settle around $1.2330.
- Support $1.2283, $1.2266. Resistance $1.2363, $1.2390/1.2400 ahead of $1.2438.