Cable consolidated at ~$1.2970 in early.......>

CABLE: Cable consolidated at ~$1.2970 in early Asia-Pacific trade after a ~100

pip slump on Monday. The pair's decline at the beginning of the week occurred on

the back of political uncertainty surrounding Brexit, which countered the early

risk-on tone, as PM May faced pressure both from the EU and some Tory MPs who

threatened to withdraw their support for the PM.

- Markets continued to kick back on expectations that the UK and EU will reach a

Brexit agreement that satisfies all sides any time soon. A late-in-the-day

speech from PM May failed to prop up confidence & GBP was the worst performer in

G10 FX.

- Cable remains on the back foot in early Europe Tuesday, the rate breaking

below $1.2950 to extend recent lows to $1.2937 at writing. Move in tandem with

EUR/USD, as EUR/GBP , though off earlier lows of Gbp0.8835(200-dma), remains

below Monday's high of Gbp0.8857. Cable bears eye the Oct4 lows at $1.2922 ahead

of the 61.8% short-term retracement level at $1.2905. - Focus this week falls on

any Brexit fallout, BoE Gov. Carney's & BoE Chief Economist Haldane's addresses

today, as well as UK sovereign debt ratings by Fitch and S&P on Friday.