Cable has edged back above $1.3000 and........>

CABLE: Cable has edged back above $1.3000 and hovers just 3 pips north of the

level at typing, still -13 pips on the day. Selling pressure hit the rate at the

open as participants assess the chance that the BoE will trim interest rates at

the MPC meeting scheduled towards the month-end.

- A disappointing retail sales report published Friday fuelled BoE easing bets,

sending the implied probability of a cut this month to 70.5%. At the turn of the

year, markets priced a modest 8.4% chance of a January cut.

- Cable reacted to Friday's data with a nosedive, even though it edged higher in

the lead-up to the release. A beat in U.S. housing starts kept the pair heavy,

resulting in a close below the 50-DMA, which limited losses the prior day.

- Bears look for a deeper fall, potentially through the Jan 14 trough at

$1.2955. Below there opens the Dec 23 low of $1.2905. Bulls need to reclaim the

50-DMA ($1.3037) to bring Friday's high of $1.3118 into play.

- Some key UK data releases this week include labour market report (Tuesday) and

flash Markit PMI surveys (Friday). BOE Gov Carney speaks on Tuesday & Wednesday,

his colleague Haskel appears on Friday as they take part the WEF in Davos.