Cable has advanced 11 pips & jumped back......>

CABLE: Cable has advanced 11 pips & jumped back above $1.3200 for the first time

since mid-Oct, last trades at $1.3208. The Sun reported that PM May "has

privately told Cabinet mins that she will not take the UK out of the EU without

a deal," but "she is not yet prepared to rule out no deal in public because it

would remove a key bargaining chip in negotiations with the EU." Meanwhile, the

Irish gov't stressed it will not yield on the backstop clause, while the Commons

are set to proceed with key Brexit votes this week, with a focus on amendments

to UK PM May's deal. On Friday GBP/USD rallied 130 pips supported by the Sun's

report stating that the DUP "have privately decided to back Theresa May's Brexit

deal" (based on a time limited backstop). Bulls look for consolidation above

$1.3200 before trying to extend on last week's rally triggered by the perception

that a no-deal Brexit is becoming more distant. Their initial focus falls on the

upper 2.0% 10-DMA envelope at $1.3259, ahead of upper Bollinger band (3%) at

$1.3288. Meanwhile, bears look for a fall below $1.3200. 

- UK focus this week falls on the aforementioned Brexit votes in the Commons,

m'fing PMI due Friday & BoE's Carney, Broadbent & Ramsden on Monday.