Cable last at $1.2525, a touch higher on......>

CABLE: Cable last at $1.2525, a touch higher on the day but off of early highs.

- Yesterday saw the rate resume its rally driven by a softer greenback from off,

with cable peaking at $1.2571 in European hours. Slightly better than exp. U.S.

CPI numbers brought some relief to the greenback and the rate eased off

subsequently, more than halving its earlier gains in the process.

- The key trendline resistance, which comes in today at $1.2566, remained intact

yesterday. A break here would give bulls the upper hand, shifting their focus to

the 21-DMA at $1.2604. Bears look to the 100-HMA at $1.2504 and a breach of the

level would bring the Jul 9 YtD low of $1.2440 back into play.

- In its Financial Stability Report published yesterday, the Bank of England

said that it sees an increased risk of a no-deal Brexit, which could damage GBP,

UK gov't bonds and house prices. On the upside, the report was quite upbeat re:

the banking system's resilience & preparedness for a no-deal scenario.

- A speech from BoE's Vlieghe is scheduled for later today.