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Brexit headlines continue to provide the......>

CABLE
MNI (London)
CABLE: Brexit headlines continue to provide the directional drive in sterling.
PM May, EU Juncker press conference last night reported that they had agreed a
series of changes to the Brexit deal, added to by comments from Cabinet Minister
Lidington that the Govt had secured binding changes that strengthen and improve
the withdrawl agreement and the political declaration. Market took this
announcement as progress made for an orderly Brexit and bought sterling. Cable
spiked up to $1.3289 before negative noises were heard from Conservative and
Labour MP's commenting that nothing of substance had changed. Brexiteer factions
in the governing Conservative Party look split which could make today's
Meaningful Vote a much closer call. ERG Steve Baker said changes do not replace
the Ireland backstop, deal falls short, acted to weigh back on the earlier
sterling euphoria, pressed cable back to $1.3197 before bouncing. Rate recovered
to $1.3264 before rate drifted off to the $1.3200 area into Europe. Brexit
headlines remain key ahead of tonight's vote. UK data provides a sideshow, UK
Trade, IP/Mfg, Jan GDP at 0930GMT. US CPI at 1230GMT also in focus. Support
$1.3200-1.3190, $1.3170, $1.3150. Resistance $1.3264, $1.3290/1.3300, $1.3350. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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