Cable rallied to a recovery high of $1.3150...>

CABLE: Cable rallied to a recovery high of $1.3150 on back of strong Mfg PMI

data, released earlier in the day, and market perception that UK was moving

toward a soft Brexit during the indicative voting debate. Post 1600BST fix rate

drifted off to $1.3103 ahead of the close and ahead of the results of the UK

voting. All four Brexit proposals failed to pass, the vote for UK to remain in a

Customs Union came closest, missing by just 3 votes. This result dropped cable

to $1.3031 in thin NY/Asia transition trade but buyers emerged into the dip to

take it back to $1.3083. Rate settled between $1.3060/75 through the balance of

the session before picking up fresh demand into Europe which has nudged topside

to $1.3086. Cabinet meeting today to decide next move as the Apr12 deadline

approaches. No-deal remains an option but talk around that Govt may bring PM

May's MV (Withdrawl Bill) back for a fourth try, accompanied by a vote of no

confidence in the Govt. Should the Govt lose this vote it is likely to open the

door to a General Election, which in turn could allow for the EU to allow a

longer extension. 

- UK construction PMI due at 0930BST. Brexit headlines remain key.