Cable is testing the psychological $1.3000....>

CABLE: Cable is testing the psychological $1.3000 barrier after slipping 10 pips

thus far. Sterling is the worst G10 performer, even in the absence of potential

headline catalyst. Persistent worry re: the UK's future relationship with the EU

and positioning ahead of the Jan 30 BoE monetary policy meeting may be applying

some weight.

- The rate had a look below $1.3000 yesterday, but then retraced the move,

stabilised post-WMR fix and closed marginally below neutral levels.

- A clean break under the aforementioned round figure would prompt bears to

target the nearby Jan 14 low of $1.2955. Bulls look to retake the 50-DMA at

$1.3040, before turning focus to the Jan 17 high of $1.3118.

- Market pricing of a 25bp rate cut from the BoE this month pared back a tad,

but remains elevated at ~67% (vs. Friday's ~71%).

- Some key UK data releases this week include labour market report (Tuesday) and

flash Markit PMI surveys (Friday). BOE Gov Carney speaks on Tuesday & Wednesday,

his colleague Haskel appears on Friday as they take part the WEF in Davos.