Cable remains on the backfoot, having been....>

CABLE: Cable remains on the backfoot, having been sold down from Monday's high

of $1.3041 to $1.2941 in a mix of risk aversion (as China imposed retaliatory

tariffs on some US imports) and cross party Brexit talks reportedly struggled to

make progress. Cable did manage to recover to $1.2970 in NY before closing the

day around $1.2960. Early risk aversion in Asia knocked cable down to $1.2943,

but JPY sales into the Tokyo fix (despite the negative open in the Nikkei),

allowed for a recovery back up to $1.2970 where rate again met decent headwinds.

Rate drifted back to the $1.2960 area, failed to gain any upside impetus from US

Trump's positive comments concerning Sino-US trade talks, before getting shoved

down to $1.2950 in early European trade. 

- UK Employment Report due this morning at 0830GMT. Jobs data expected to remain

firm with attention on earnings. Strong data showing could prompt a knee jerk

sterling buy reaction but underlying Brexit concerns likely to dampen any major

positive reaction. 

- Support $1.2950/40($1.2941 May13 low, 76.4% $1.2866-1.3185), $1.2900, $1.2866.

Resistance $1.2970, $1.3000