Bursts back above $1.31 as markets react to...>

CABLE: Bursts back above $1.31 as markets react to reported comments from EU

Tusk suggesting he will suggest a flexible one-year extension (frexit) for

Brexit. Rate had been pressed to a low of $1.3060 Thursday before it settled

around $1.3080 into the close. Thursday saw a lengthy debate on the extension

bill in the House of Lords, but the Lords' vote is yet to come. The rate eased

through the day, after being repulsed again ahead of $1.32(high $1.3191), as

risk appetite faded and participants realised that an "accidental" no-deal

Brexit by default remains an option. Latest press reports are pointing to a

split within PM May's cabinet. According to the Telegraph, a group of

eurosceptic ministers have discussed "staging a mass walkout" in protest against

soft Brexit, while some other mins discussed the possibility of a second

referendum with their Labour counterparts. Cable has edged to an extended

recovery high of $1.3123, helped in part by general risk appetite prompted by

positive comments on Sino-US trade talks. 

- Support $1.3070/60, $1.3015/00. Resistance $1.3120/25, $1.3160/65, stronger

toward $1.3200.