Cable extended its recovery off Tuesday.......>

CABLE: Cable extended its recovery off Tuesday lows of $1.2941 through Asian

trade to a session high of $1.3003. Rate eased to $1.2990 ahead of the European

but picked up fresh demand interest which has taken rate on to a further

extended recovery high of $1.3008. Rate holds above $1.3000 at writing. Risk-on

was given a boost in Asia on the back of press reports concerning Italian Govt

GDP predictions which boosted EUR/USD and dragged cable along with it. Last day

of the ruling Conservative Party Conference with PM May to speak. Party unity in

the face of Brexit negotiations, along with support for the Irish unionists/open

Irish border, likely to be key in her speech. However, PM May likely to draw

Brexit comments so market to be on headline watch.  

- Little market reaction to a Telegraph piece which suggested that "UK PM May is

under pressure to set out a timetable for her departure after Cabinet mins said

it was now a question of "when, not if" she stands down as PM."

- Key UK Services PMI headlines the economic docket on Wednesday.

- Support $1.2970 ahead of $1.2941. Resistance $1.3050.