Cable eased to an early NY low of $1.2607.....>

CABLE: Cable eased to an early NY low of $1.2607 Wednesday before it recovered

to $1.2675 then found support above $1.2640 ahead of the FOMC. Fed hiked rates

by 25bp as widely expected but accompanying comments were not seen as dovish as

some had speculated, Cable dropped back to $1.2609, the market noting Fed

Powell's concern for global growth going forward which prompted risk-off

trading. This risk-off tone weighed on US equities into the close with the

Nikkei feeling the weight in Asian trading. The move lower in the Nikkei took

USD/JPY below Y112.00, the pressure on the USD allowed cable to extend its

recovery from an early Asia low of $1.2608 to $1.2664 into early European

trading. Brexit remains the key driver for sterling direction, though traders

will watch equity markets as the barometer of risk. BOE rate decision at

1200GMT, though ongoing Brexit debate likely to prevent any rate move from the

Bank. Cable resistance seen between $1.2670/80, a break to expose $1.2700/10.

Support remains into $1.2610/00. EUR/GBP holds close to Gbp0.9000.