Cable has stabilised around $1.2705 after.....>

CABLE: Cable has stabilised around $1.2705 after yesterday's drop to the

intraday low of $1.2696, which came within just ~30 pips of the YTD lows. 

- The pair's rout began in the early European session and continued into NY

trade, as S&P stated that they believe the risk of a no-deal Brexit has

increased sufficiently to become a relevant ratings consideration. The agency

added that a no-deal Brexit would draw the UK into a moderate recession lasting

4-5 quarters. 

- The pressure from S&P's comments occurred alongside broader dollar strength,

with DXY hitting a fresh YTD peak as U.S. equities outperformed. 

- As the rate's multi-month decline continues, cable bears remain focused on YTD

lows of $1.2662 in search of retaining the downside momentum. Bulls look to

retake yesterday's Asia-Pac high of $1.2813 before challenging the Oct 29 high

at $1.2853. 

- The highlights of this week's UK docket come on Thursday, with the M'fing PMI

to be followed by the BoE MonPol decision & inflation report.