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The rejection away from Friday's......>

EURO-STERLING
MNI (London)
EURO-STERLING: The rejection away from Friday's high of Gbp0.8958 extended to
Gbp0.8884 in Asia today with rate holding heavy into early Europe. Move saw rate
falter ahead of its 10-dma 1.0% envelope (Gbp0.8965 Jul20) and has now eased
below the 10-dma, by time today coming in at Gbp0.8887. If rate can build on
this corrective pullback to expose next support area between Gbp0.8874-66(Jul18
low/Jul13 high). The base of the 1.0% envelope today comes through at Gbp0.8799.
UK Govt now in its summer recess. Sterling gained a boost as PM May moved to
take control of Brexit negotiations. Focus now on next week's BOE MPC rate
decision with markets still looking for a hike, though this forecast has taken a
few data knocks of late. Resistance Gbp0.8893 ahead of Tuesday high of
Gbp0.8927. Month-end approaching which could see cross demand emerge. 
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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