Cable managed to recover off its early........>

CABLE: Cable managed to recover off its early Europe low of $1.2925(found

support at the previous day's low) to $1.2979 before momentum faltered and

sterling again fell victim to the USD's general strength. Cable sank back to

$1.2928 into the close as rate tracked EUR/USD. Rate showed an opening high of

$1.2951 into a thin Asia open before rate eased off to trade down to $1.2928 as

USD buoyancy continued. Rate managed to recover to $1.2940 in early Europe only

to drop through recent lows at $1.2928/25 to $1.2924 as rate tracked EUR/USD's

negative react to release of Germany IP data. Global growth concerns seen as a

key driver of markets and should draw a mention at today's BOE rate decision,

inflation report followed by the BOE Carney press conference. No change in rates

widely expected. Apart from growth expect some reference to the ongoing impasse

in Brexit negotiations. On this note PM May travels to Brussels to meet EU

Juncker. Talk that PM May could move the next vote in Parliament from Feb14 to

the week commencing Feb25. Cable support seen to $1.2920, a break to expose

$1.2900. Resistance at and above $1.2950, more at $1.2980/85.