Cable continues to benefit from the...........>

CABLE: Cable continues to benefit from the broader, albeit modest, USD weakness,

which stemmed from the weekend news flow. Rate currently seen pressing up

against posed highs of $1.2681.

- Brexit remains the key driver of sterling direction. The FT has reported that

"Theresa May has cut short her cabinet ministers' Christmas break, summoning

them to a meeting to discuss a no-deal Brexit on Jan2." While the Times

suggested

that "Theresa May's allies are plotting to keep her in Downing Street for at

least another two years amid growing confidence that she will get her Brexit

deal through parliament." Elsewhere the Observer noted that "Jeremy Corbyn is

facing a storm of criticism from Labour activists and MPs after suggesting he

would press ahead with Brexit if the party won a snap general election."

- Support levels clustered from $1.2632 to $1.2593, representing a string of

recent intraday lows, while initial resistance is noted at Friday's intraday

high of $1.2698 ahead of $1.2720.