Cable last trades flat at $1.3061. Worth......>

CABLE: Cable last trades flat at $1.3061. Worth mentioning RTRS ran comments

from UK C'llr Hammond, who said that a no-deal Brexit would be a "mutual

calamity." He added that the EU "will not consider replacing the backstop with

an alternative now" and that the 'Malthouse' initiative is a "valuable effort to

allay backstop concerns in the future." This comes after GBP rallied yesterday,

aided by the Sun's story stating that UK negotiators were "pleasantly surprised"

at how well talks with the EU are going. This played out amidst broader USD

weakness evident in the NY session. Cable finished almost 140 pips higher as a

result, even as EU's Juncker maintained his view on the Brexit talks.

- UK labour mkt data provided no surprises yesterday, with unemployment coming

in flat at 4.0%, while wages were virtually in line with exp.

- Bulls need to clear $1.3073, which capped gains yesterday, before attempting a

jump onto the $1.3100 handle. Meanwhile, bears need a move through the upper

1.0% 10-DMA envelope at $1.3052, followed by the 21-DMA, located at $1.3000.

- UK focus turns to any fresh Brexit developments, with UK PM May set to meet

with EU Commission's Juncker later today.