Cable managed to extend its recent recovery...>

CABLE: Cable managed to extend its recent recovery to $1.3041 before profit

taking/account adjustment saw it drift back to $1.2983 ahead of US Employment

Report Friday. The stronger than forecast provided a general boost to the USD

which saw rate extend the corrective pullback to $1.2952 before it closed the

week around $1.2970. Sterling was marked higher into Asian trade Monday as

traders reacted to weekend reports suggesting that PM May had secured private

concessions from Brussels. Bloomberg show an opening high of $1.3065 though rate

had eased off to $1.3025 into the Tokyo open. Pullback slowly extended to

$1.2983 through the session, helped by a denial from No.10 as well as reported

comments from Brexit Secretary Raab wanting the option to pull out of a Irish

border back stop after 3-months. Rate bounced back into Europe to $1.3015 as

market reacted to a line in the FT that 'financial services issues are all but

settled'. Brexit headlines remain the key driver for direction. Key UK Services

PMI data  due for release at 0930GMT. Market median 53.3, from 53.9 last. Cable

support $1.2980/70(technical gap to $1.2972) ahead of $1.2950. Resistance

$1.3020/25 ahead of $1.3040/50.