Brief recovery from an initial low Tuesday....>

CABLE: Brief recovery from an initial low Tuesday of $1.2729 to $1.2778(seen in

early NY) was reversed as market reacted to a warning from S&P suggesting that

as chances of a no-deal Brexit rise it is causing ratings concerns. Rate dropped

to $1.2696 but before it recovered to sit just above $1.2700 into the close.

Rate marked an early low of $1.2699 at the Asia open, though conditions were

seen thin, trading through most of the Asian session between $1.2701-12 though

was beginning to rise into Europe. Early Europe edged rate on to $1.2722, but

with little notable conviction, the rise quickly attracting sell interest which

knocked it back to $1.2707. Short term technical signals currently seen

supportive but month-end flow expected to benefit the USD and should dampen any

recovery hopes. Month-end models are showing strong USD demand, which along with

today being a SOMA day($22.9bn), which usually supports the USD, could keep

downside pressure on cable. Support remains around $1.2700, a break and clear to

open a deeper move toward $1.2670 ahead of $1.2650. Resistance $1.2730 ahead of

$1.2780.