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Cable managed to recover off its Monday low...>

CABLE
MNI (London)
CABLE: Cable managed to recover off its Monday low of $1.3095, posted a high of
$1.3154 into the Asian open this morning. However, the soft CNY fix by the PBOC
prompted risk-off flow which benefited the USD and pressed rate back to $1.3115
before it met some support. Fresh demand into Europe has allowed rate to edge
back to $1.3145, the rate taking direction so far from EUR/USD as EUR/GBP holds
a tight Gbp0.8847-62 range. UK Construction PMI data due at 0830GMT, median 52.5
vs 52.5 last. More important Services PMI due for release Wednesday. PM May to
present a third alternative customs arrangement at Friday's Chequers cabinet
meeting remains key focus for sterling. Some suggestions that sterling could
ease ahead of any developments from this meeting. US holiday Wednesday, working
a half day Tuesday, expected to affect liquidity and could prompt some
volatility. Cable support $1.3115, $1.3095 ahead of $1.3085/80. Resistance
$1.3155/65 ahead of $1.3205/15.  
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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