A mix of risk aversion (Sino-US trade spat)...>

CABLE: A mix of risk aversion (Sino-US trade spat) and reports that the

Conservative-Labour talks are making little to no progress acted to weigh on

sterling during Wednesday trade. Cable, which had seen a high in Asia of $1.3080

eased to an eventual low of $1.2987, the break of the 100-dma at $1.3001

providing some added momentum. Rate recovered into the 1600BST fix, touched

$1.3028 before it settled back between $1.3000-10 through to the close. Early

trade in Asia was restricted to a tight range of $1.3004-15 but picked up demand

into early Europe which has taken it back to $1.3025. Expect some resistance

into the NY recover high of $1.3028, a break to open a move toward $1.3050/60.

Support remains into $1.3000 ahead of $1.2987. 

- Any developments on Brexit remain key in an otherwise light UK calendar for

Thursday. US PPI, Trade and Weekly Jobless Claims provide data interest into the

afternoon, with FEd Powell, Bostik and Evans due to speak.