Brexit concerns, along with release of........>

CABLE: Brexit concerns, along with release of slightly weaker than forecast UK

Retail Sales data Friday, acted to weigh on sterling Friday, which along with a

generally stronger USD acted to press cable from an early high of $1.2993 to a

late NY low of $1.2857. Short term spec sterling longs were also trimmed into

the weekend. Thin conditions in early Asia saw rate push up to $1.2900(BBG data)

before it fell back to $1.2858 ahead of Tokyo. Rate extended low to $1.2848

after the Tokyo open then recovered slowly through the balance of the session to

$1.2877 into Europe. Weekend

news flow suggested no substantial progress coming out of cross-party talks re:

Brexit. Reports suggest UK PM May will try to renegotiate the Irish backstop

clause of her deal, with some saying she may want to amend the Good Friday

Agreement. Meanwhile, EU gov'ts are reportedly divided over how long the UK

could delay Brexit, while Germany Merkel said responsibility for an orderly

Brexit does not lie solely with PM May. As a reminder, Monday will see May

presenting her "plan B" to lawmakers(next vote Jan29), amidst doubts that she

will reveal any notable deviations from the original plan.