Cable is feeling some pressure after UK.......>

CABLE: Cable is feeling some pressure after UK Home Sec Javid told ITV that the

risk of a no-deal Brexit has increased & that he does not think "it's possible

to rule out no deal." This comes after reports that 15 UK ministers threatened

with voting against PM May's Brexit policies, if she refuses to take a no-deal

Brexit off the table. Cable last trades at $1.3043, -7 pips on the day. The pair

dropped 12 pips yesterday, with May travelling to Brussels for talks with EU's

Juncker. Both sides pledged further attempts to break the current deadlock, but

little new was offered. Even so, BBG reported that "an agreement is being worked

on behind the scenes, but the EU is reluctant to offer concessions until it

knows they will be enough to swing lawmakers behind the deal."

- It is worth mentioning that Fitch put the UK's credit rating on a formal

downgrade warning, pointing to the "heightened uncertainty" related to Brexit.

- Bears need a slip below $1.3012, which limited yesterday's losses, before

attempting a move at the 21-DMA/200-DMA, located at $1.2998/96. On the topside,

initial focus falls on the upper 1.0% 10-DMA envelope at $1.3060, which is

followed by $1.3109, where the rate peaked yesterday.