Cable advanced trough yesterday's London &....>

CABLE: Cable advanced trough yesterday's London & NY sessions, after holding

steady in the Asia-Pac hours, but erased most of its gains in the wake of the

post-FOMC press conference with Fed Chair Powell.

- The upside move was accelerated by the fact that PM May refused to rule out

the UK entering some kind of customs union with the EU post-Brexit. However, the

slid back below $1.3100, as Powell reiterated the Fed's neutral stance, played

down slowing inflation, and said that downside risks moderated, even as the FOMC

delivered a "technical" 5bp cut to its IOER.

- GBP/USD trades flattish at $1.3053. Bulls look to $1.3100, which represents

the upper 1.0% 10-DMA envelope. Bears eye the 21-DMA at $1.3016.

- Focus turns to the monetary policy decision from the BoE, as well as the

accompanying press conference with BoE Gov Carney & the Bank's inflation report,

due later today. UK construction & services PMI figures come out today &

tomorrow respectively. Today's UK local elections will be watched as an

indicator of voter support for PM May's handling of Brexit, with the Tory party

expected to suffer electoral damages.