BoE Governor Carney's warning of a............>

CABLE: BoE Governor Carney's warning of a shipwreck to the global economy if

trade tensions intensify, pressured GBP yesterday to close below $1.26 for the

first time in two weeks. Risk-off trade through Asia which saw GBPJPY fall just

4 pips short of the ytd low (Y135.38), further weighed on sterling across the

board. GBPUSD holds around session lows of $1.2585 at the European crossover

with near-term support at $1.2549/41 from the Jun 19 low & 2% lower Bollinger

band. Expect further support behind on approach to $1.2500 ($1.2506 - Jun 18

low).

- EURGBP ticked higher to Gbp0.8968 and is expected to face resistance through

Gbp0.8970-80 from a series of previous highs. The psychological Gbp0.90 level

remains key for bulls which has so far proved hard to overcome.

- UK Services PMI is due up at 0930BST. The UK's services PMI edged up to 51.0

in May from 50.4 in April, signalling a marginal rise in service sector output

growth. The MNI median suggests the index will remain unchanged in June.