Cable struggled to hold above $1.3050.........>

CABLE: Cable struggled to hold above $1.3050 during Monday's trade, recent

sterling strength evaporating due to Govt suggestions that the Mar11 Budget

could be delayed (due to the resignation of Chancellor Sajid Javid), though

Budget has to be announced by Apr05. UK Chief EU Trade negotiator David Frost

spoke Monday, suggested UK would rather leave without a trade deal with the EU

than sign up to EU rules. This adds to earlier comments from French Foreign

Minister Le Drian where he warned that the UK and EU are going to rip each other

apart in upcoming trade talks. Cable made an eventual show under $1.3000,

touched $1.2999 before it closed at $1.3004. Apple Corp warnings on profit, due

to effects of the COVID-19 outbreak, bruised risk with cable pressed to an

extended low of $1.2992, in early Asia. Rate recovered to $1.3005 but came under

another wave of sell pressure into Europe, taking rate down to $1.2986. Rate

currently trades around $1.2995. EUR/GBP recovery back within its 1.0% 10-dma

envelope was also seen weighing on sterling. Support $1.2986, $1.2970 ahead of

$1.2950. Resistance $1.3000/10, $1.3027, $1.3050/55, $1.3070. 

- Focus on UK Employment Report at 0930GMT.