Cable eased to $1.3060 Friday having seen a...>

CABLE: Cable eased to $1.3060 Friday having seen a spike to $1.3104 following

reaction to a Bloomberg report suggesting UK ready to drop Brexit demands on the

Irish border in order to ease through a deal. Rate squeezed down to $1.3044 in

early Asian dealing, weekend news flow was a little more -ve for PM May with a

pro-EU march in London drawing 100s of thousands, & more talk of contempt from

within her own party/cabinet. That being said reports suggest that May is to

tell parliament that ~95% of the Brexit negotiations are now complete. Rate

managed to recover to $1.3077 before it settled between $1.3050/75 through the

balance of the Asian session. Early Europe has taken the rate up to $1.3081 with

risk appetite given a boost overnight by recovery in the Chinese equity market.

Resistance $1.3105. Support $1.3055/45, $1.3020, with potential still for a

deeper move toward $1.2970. 

- Focus Tuesday on BoE Chief Economist Haldane's appearance in Paris & BoE Gov.

Carney's address in Toronto. Points of note this week also include any Brexit

fallout and UK sov. debt ratings by Fitch and S&P (Friday).