Cable is 30 or so pips off of the..........>

STERLING: Cable is 30 or so pips off of the overnight highs, last trading at

1.4070, while EURGBP trades at 0.8720.

- Cable's drift higher came on limited to no news flow, and topped out just in

front of 1.4100, coinciding with the high from Mar 29 (1.4096). The 55-DMA sits

below 1.4000 at 1.3992, with bears needing a close below the low from Mar 20

(1.3984) to confirm a break of the 55-DMA & add weight to the case for a

correction back to the lows from Mar 13 (1.3873). To the upside, bulls now need

a close above 1.4127 to gain breathing room.

- Today brings the release of the UK construction PMI, which will be followed by

the Service sector equivalent on Thursday. Q4 unit labour cost data also adds to

the event risk on Thursday.