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Tracked EUR/USD lower Wednesday, following....>

CABLE
MNI (London)
CABLE: Tracked EUR/USD lower Wednesday, following failure to move above its
recent high of $1.2385. Rate eased to $1.2313 during the NY afternoon before it
closed the day around $1.2330. Rate consolidated in Asia between $1.2325/37,
buoyed in part by general risk appetite generated by goodwill gestures between
the US and China ahead of trade talks. However, sterling has come under renewed
pressure into Europe, cable breaking down to $1.2315, whilst EUR/GBP, which had
closed below its 100-dma (Gbp0.8930 Wed, Gbp0.8936 current) was pushed above in
opening trade, the cross trading to Gbp0.8940. Sterling has pared some of these
early losses, cable currently around $1.2325, cross around Gbp0.8936. As has
been noted in recent days, sterling liquidity is poor and any decent sized order
likely to provoke a volatile reaction.
- Cable support noted between $1.2313/07 ahead of $1.2300. Resistance
$1.2360/70, $1.2385.
- A light UK calendar, attention set on ECB announcement and US CPI with Brexit
developments remaining a key driver.   
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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