Cable fell back from its Thursday high of.....>

CABLE: Cable fell back from its Thursday high of $1.3131 to an eventual low of

$1.3016 as markets reacted to the political fallout following PM May's

appearance in Brussels along with general risk aversion which boosted the USD.

- Sterling suffered from an extended deadlock in the attempts to forge an

acceptable Brexit agreement. PM May faces opposition both from hardline

Brexiteers in her own party and from the EU.

- The rate did manage to draw some support from Euronews reports made on

Thursday which suggested that the "EU is willing to alter the controversial

backstop to make it UK-wide as requested. However will take some time to

prepare. In meantime they will look to put a clause in Withdrawal Agreement

committing the EU to creating a UK-wide backstop." But that quickly faded.

- Break of $1.3060 seen exposing potential move to $1.2970 ahead of Oct4 lows of

$1.2922. Bulls need a close above $1.3200 before challenging the Sep20 high at

$1.3298.

- UK focus Friday remains on Brexit matters & an address from BoE Gov. Carney.