Cable has shed its early gains and last.......>

CABLE: Cable has shed its early gains and last trades at $1.2878 after finishing

as the worst G10 performer yesterday as PM Johnson's Brexit plans suffered a

setback, which injected a fresh portion of uncertainty.

- The rate lost ground through London hours yesterday amid the usual Brexit

noise & ahead of the key parliamentary vote, but surged post-WMR fix as the FT

reported that most independent Tories might support the PM's timetable motion.

- The highlight of the day was an evening showdown in parliament as the Commons

voted on Brexit legislation. Whereas they backed the second reading of the

Brexit bill, MPs rejected PM Johnson's proposal to fast-track remaining

legislative work. Cable tumbled in reaction to the vote.

- EU Council Pres Tusk noted that he will recommend granting the UK another

Brexit extension. News outlets circulated comments from a No. 10 off'l who said

that a delay until Jan 31 would likely result in a general election.

- Bears look for a drop under the 23.6% retracement of this month's rally at

$1.2823. Bulls would like to see a move towards the $1.3000 figure, which capped

gains yesterday.