Trial now

Opening calls


Broader base buying going through


(Q1) Corrective Pullback

CABLE: Cable saw a high Thu of $1.2996, after bouncing off its initial BOE MPC
react low of $1.2854, as BOE Carney was seen leaving the door open to a possible
rate hike, even through a disruptive no deal Brexit. However, rate faltered
ahead of $1.3000 and  drifted off to $1.2947 into Thu's close. Asia slightly
extended pullback to $1.2942(38.2% $1.2854-1.2996) before early Europe  pressed
it down to $1.2921(38.2% $1.2441 Jan3-1.3217 Jan25), the move tracking the early
downside pressure on EUR/USD. Rate recovered to $1.2972 pre NY before it lifted
to $1.2976 early in the US session. EUR/USD again dragged cable lower, eased to
$1.2927 in late NY. No break through so far seen in PM May's journeys to
N.Ireland, Brussels and Eire but traders will be wary of the weekend press for
any developments, which could affect sterling in either direction. Support
$1.2921 ahead of $1.12910-00. Resistance $1.2976 ahead of $1.2995-1.3000.
- UK prelim Q4 GDP, Trade, IP/Mfg Monday (Feb11 0930GMT); BOE Carney speaks
Tuesday(Feb12 1300GMT); Jan CPI and PPI Wednesday (Feb13 0930GMT); May presents
fresh Brexit motion in parliament (Feb14); Jan Retail Sales Thursday (Feb15
MNI London Bureau | +44 203-586-2231 |