Cable saw an extended low of $1.2606..........>

CABLE: Cable saw an extended low of $1.2606 Thursday, as markets continued to

react to the political fall out from Brexit. Suggestion by one political

journalist that PM May likely to step down, or at least provide a timetable in

stepping down, either Friday (after Thursday's European elections in the UK), or

after Monday's UK Whitsun holiday, and sees the transition to a new leader as a

managed affair. Report sparked a correction in sterling, saw cable edge to

$1.2651 into NY. Cable dipped to $1.2624 before general USD sales saw rate

extend recovery to $1.2684. Move aided as 10y UST yields were pressured lower

following disappointing US PMI data. Cable settled between $1.2655-80 through to

the close, finishing the day at $1.2660. Trade in Asia was confined within a

range of $1.2654-69, with the USD under general pressure again into Europe as

rate edges up to $1.2673. 

- Resistance seen between $1.2685/1.2700, a break to expose $1.2720 ahead of

$1.2750. Support $1.2650, stronger from $1.2620 through to $1.2600.

- UK Retail Sales at 0830GMT expected to see a pullback from last month's strong

show(market median ex auto -0.5%mm)