Cable saw a low of $1.2962 in European........>

CABLE: Cable saw a low of $1.2962 in European morning trade Monday, as market

reacted to UK Chancellor Javid comments from a weekend interview, signalled that

the UK will not seek a close economic alignment with the EU after Brexit. Rate

recovered through a  US holiday thinned session to $1.3014 into the close. Early

Asia saw rate drift back to $1.2996 before risk took a general knock on China

coronavirus concerns, the sharp drop in USD/JPY saw cable push up to $1.3022

before losing momentum. Rate eased to $1.3002 in opening Europe trade but so far

able to hold above the figure. Speculation ongoing for a possible rate cut at

the BOE MPC announcement on Jan30, recent poor data and reported dovish comments

from MPC members have opened the door but arguments out there that it may be a

premature move. UK Employment/Earnings data due for release at 0930GMT, though

seen backward looking, with more focus set on Friday's flash PMI's to provide a

clearer rate picture. BOE Carney makes an appearance in Davos, 'Solving the

growth equation' panel. US Trump also appears in Davos. 

- Cable support $1.3000/1.2996, $1.2985/80, $1.2962/55. Resistance $1.3020/25,

$1.3050/60, $1.3080.