Announcement by Brexit Party Leader Farage....>

CABLE: Announcement by Brexit Party Leader Farage Monday that his party would

not run against sitting Conservative MP's in the upcoming Dec12 election

provided sterling with a boost which spiked cable to an extended recovery high

of $1.2898. Move seen providing the opportunity for PM Johnson to achieve a

clear majority win (according to polls) which in turn opens the door to an

easier Brexit withdrawl. The pound gains faded through NY, as cable drifted back

to $1.2849, closing the day at $1.2855. Rate edged to $1.2867 into the Tokyo

open before it eased off to $1.2852, the rate seen meeting decent support into

the $1.2850 area. Recovery to $1.2866 into Europe before it dropped again to

$1.2853. Election/Brexit remains the key driver of sterling direction, the pound

Monday basically disregarding UK GDP, as well as Moody's UK negative

outlook(Friday) and last Thursday's dovish BOE MPC vote. Focus today on UK

Employment. Market median -102k Sep Employment Change 3m/3m, unemployment rate

to remain at 3.9%. Avg earnings to hold at 3.8% 3m/y.

- Cable support $1.2850, $1.2810/00, $1.2769. Resistance $1.2874(21-dma),

$1.2900, $1.2925/30.