Cable: Sep4 Range $1.2913-68.......>

STERLING SUMMARY: Cable: Sep4 Range $1.2913-68. Sep5 Asia open $1.2924, range

$1.2920-40. Current $1.2935(0454GMT)

* Eur/Gbp: Range Gbp0.9160-0.9226. Asia open Gbp0.92015, range

Gbp0.92015-0.92125. Current Gbp0.9204(0445GMT)

* Sharp drop lower in cable post Monday's London fix saw rate touch a low of

$1.2913, off earlier high of $1.2968. 

* Rate recovered to $1.2934 before it settled around $1.2930 into the close (NY

and Canada holidays Monday).

* Pre Tokyo demand for Usd/Jpy prompted general Usd demand which pressed cable

to $1.2921 in opening Asia.

* Rate recovered, again met resistance at $1.2934 before it drifted off to

$1.2920. 

* Another recovery, again met resistance at $1.2934 before level gave way taking

rate to $1.2940 into Europe.

* UK Services and Composite data due at 0830GMT. Market medians 53.5(last 53.8),

54.0(54.1) respectively.