Cable rallied to a high of $1.3492 Tuesday....>

CABLE: Cable rallied to a high of $1.3492 Tuesday as market reacted to MPC

Vlieghe comments on suggestion he is slightly more hawkish than presumed.

However, this sterling boost proved short lived, the failure as well to edge

back above $1.3500, saw rate drift off to $1.3414 in early NY before it

recovered to $1.3435 into the close. This recovery extended in early Asia to

$1.3443 before risk aversion emerged, sales of TRY/JPY by Japanese retail seen

as the catalyst, which pressed rate down to $1.3403. Rate had recovered to

$1.3418 ahead of Europe but rate quickly came under fresh pressure and was

pressed down to $1.3401 in early Europe. Domestic focus seen on UK CPI release

at 0830GMT. Most expect headline rate to hold steady at 2.5%. After Tuesday's

appearance in front of the TSC BOE Carney signalled that any rate move to be

data dependent. Cable support $1.3400-1.3391 ahead of $1.3377-68. Main

resistance remains into $1.3500.