Brexit developments continue to drive.........>

CABLE: Brexit developments continue to drive sterling higher. A BBG source

story, stating that UK PM May will allow her ministers to discuss delaying

Brexit during Tuesday's Cabinet meeting, drove the rate ~50 pips higher during

the NY/Asia crossover, before the Sun reported that May will propose to

ministers that she formally takes a no-deal Brexit off the table. The Sun report

took cable on to $1.3147 but rate faltered ahead of its key 50-wma which

currently comes in at $1.3153(will become more important on Friday's close). An

easing in risk seen as reports emerged of Indian jets attacking terrorist

positions in Pakistan took cable back to $1.3117 before it rallied to $1.3148 as

the FT picked up the PM May story. Dip to $1.3125 into Europe but buyers

continue to be attracted in, rate has edged back to the high in early Europe.

Resistance $1.3150/60, a break to expose $1.3175/80 ahead of $1.3200. Support

now seen back at $1.3100. 

- BoE Gov Carney speaks today 1000GMT, along with BoE colleagues: Ramsden,

Vlieghe & Haskel. 

- UK data focus this week Mfg PMI Friday.