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The pounds remains on the backfoot....>

EURO-STERLING
MNI (London)
EURO-STERLING: The pounds remains on the backfoot following last week's dovish
comments from MPC members, weak data and added to by weekend comments from
Chancellor Javid who signalled that the UK will not seek a close economic
alignment with the EU after Brexit. EUR/GBP closed on its 10-dma with the
current pressure on sterling allowing it to edge away, pushing up to Gbp0.8553
from its current 10-dma at Gbp0.8525. Whilst rate holds above it keeps
underlying tone positive with resistance noted at Gbp0.8554/62(61.8%
0.8596-0.8487/Jan16 high) ahead of Gbp0.8570/80. The top of the 1.0% 10-dma
envelope currently comes through at Gbp0.8611. Support Gbp0.8527/22 ahead of
Gbp0.8500. Friday's release of flash PMI data seen key for BOE interest rates
and general sterling direction. 
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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