Cable broke below $1.2000 in early Europe.....>

CABLE: Cable broke below $1.2000 in early Europe trade Tuesday, the follow

through selling taking the rate to an eventual fresh YTD low of $1.1959, in a

Brexit no-deal fuelled move. However, moves in the UK parliament, with several

Conservative MP's showing disregard for PM Johnson's whip withdrawl threat, with

one MP moving over to the LibDems, effectively taking away PM's majority, saw

the prospect of a no-deal Brexit made more difficult. Cable spiked to $1.2083,

with release of weak US ISM Mfg data later in the day taking rate on to $1.2106

as the USD lost ground across the board. Cable closed back at $1.2083 but picked

up fresh demand in early Asia in reaction to the House of Commons approving a

motion which allows them to control Parliamentary order. Today could see a vote

to approve that motion which could extend Article50 for another 3 months if

required. A vote for a General Election today or tomorrow could be forthcoming,

though Labour unlikely to support this ahead of Oct31(Govt needs 2/3 majority to

pass). Cable nudged on to $1.2112 in Asia, extending to $1.2124 in opening

Europe. 

- UK Services PMI at 0830GMT, market median 51.0. Brexit debate remains key.