Cable slipped back in NY Wednesday, off its...>

CABLE: Cable slipped back in NY Wednesday, off its traded high of $1.2386 into

early NY but met support into $1.2300 which kept it buoyed. Move trailed the

early downside pressure on EUR/USD(seen on positioning ahead of today's

Eurogroup summit) which in turn allowed EUR/GBP to extend away from Tuesday's

high of Gbp0.8863, as well as returning within its usual comfortable parameter

within its 1.0% envelope around its 10-dma. Cable recovered to close the day

around $1.2335. Early Asia took rate on to $1.2344, then dipped to $1.2313 on

general USD demand (linked to equity action). Dip attracted fresh demand which

allowed rate to push up to $1.2376, the move seen driven by general EUR weakness

as the cross continued to drift lower, touching Gbp0.8752, though move remains

above its key 10-dma at Gbp0.8740 which keeps underlying tone buoyant.

- UK flash PMI's at 0830GMT, CBI Trends provide domestic data interest. BOE

Vlieghe(dovish) speaks at 0930GMT. 

- Brexit has made an appearance in the background. Market view there will be no

change in the transition period.

- Cable support $1.2310/00, $1.2275. Resistance $1.2376/86, $1.2400, $1.2420.