Cable has sold off in reaction to a...........>

CABLE: Cable has sold off in reaction to a post-election Brexit report by the

Telegraph. According to the piece, PM Johnson intends to use his parliamentary

majority to legislate to secure a 2020 Brexit deadline "with or without a trade

deal." The new Brexit bill will reportedly rule out any extension to the

transition period which ends on Dec 31 2020.

- GBP/USD trades off earlier lows at $1.3265, 67 pips worse off. Bears would be

pleased by a further retreat below the $1.3200 figure, towards the Dec 12 low of

$1.3051. Bulls need to retake the Mar 13 high of $1.3381 before turning focus to

the high of Dec 13 at $1.3514.

- Cable rose above $1.3400 yesterday, only to shed gains through the rest of the

day. A weaker than exp. UK services PMI may have accelerated the move off highs.

Elsewhere, the BoE's FSR showed UK banks resilient to deep recession.

- The Bank of England will deliver its last monetary policy decision of the year

on Thursday. On the data front, labour mkt data (today), inflation figures

(Wednesday), retail sales (Thursday) and final Q3 GDP (Friday) are of note. BoE

Gov Carney speaks today, his colleague Haskel appears on Friday.