Touched a fresh 2020 low of...........>

EURO-STERLING: Touched a fresh 2020 low of Gbp0.8455 in early Europe Wednesday

only to bounce back sharply to Gbp0.8504 in what looked again to be possible fix

related demand, however, no confirmation found for this idea. Rae's recovery

held below its 10-dma which is seen keeping the current underlying buoyant tone

for sterling in place. Rate eased off to Gbp0.8465 in early NY then rallied back

to Gbp0.8494 through the 1600GMT fix before it settled around Gbp0.8480 into the

close. Early downside pressure in Europe extended the intraday base to Gbp0.8472

Thursday only to bounce back to Gbp0.8487 in another possible round of fix

related demand. However, effect seen mild and rate currently seen heading back

toward the earlier low. Decent support remains in place between Gbp0.8455/50, a

break to expose the base of the 1.0% 10-dma envelope which currently comes

through at Gbp0.8413. The 10-dma has moved lower by time to Gbp0.8498.

Resistance Gbp0.8505/15, Gbp0.8430. 

- Option expiries of note for today's NY cut seen below current levels at

Gbp0.8458(E747mln), larger interest between Gbp0.8400-0.8385 E1.77bln of EUR

puts.