Cable drifted off a high Wednesday of.........>

CABLE: Cable drifted off a high Wednesday of $1.2719, marking a low of $1.2631

in reported thin markets. However, the sharp recovery on Wall Street provided a

tentative move back into risk which allowed rate to recover in Asia to $1.2667.

Rate did ease back to $1.2651 ahead of Europe but picked up fresh demand as

London returned from its Christmas break, though trading rooms expected to be

running on lower staff levels until at least next week.  

- With GBP remaining Brexit-sensitive, traders have had little to go off over

the holiday period. As a reminder, before Christmas the FT reported that

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

them to a meeting to discuss a no-deal Brexit on January 2."

- Bulls need to clear Dec26 high at $1.2719 & hourly resistance from Dec10 at

$1.2720, while initial support is noted at the Dec21 low of $1.2618. 

- The UK docket is extremely limited this week. Data focus today on US Weekly

Jobless Claims, New Home Sales 

- Month-end models suggest USD demand(for Monday Jan31), though this outlook may

have eased after Wednesday's equity market recovery.