Cable trades flat at 1.4035, with EURGBP...>

STERLING: Cable trades flat at 1.4035, with EURGBP also unchanged at 0.8795

after Monday's Brexit-inspired ride.

- Economic data & Monetary policy now moves to the fore with UK inflation due

later today, the labour market & public finance data due on Wednesday, Thursday

will bring the BoE MonPol Decision & a speech from BoE's Ramsden, with BoE's

Vlieghe set to speak on Friday.

- Today's inflation release will help show whether price pressures are beginning

to soften as the GBP dep'n depreciation effect fades or whether underlying

inflation is gathering momentum (see Main Wire at 16:37 GMT 03/19). Consensus

looks for headline CPI at 2.8% Y/Y from 3.0%, with core seen at 2.5% Y/Y from

2.7%. Nomura suggest that the exp. "Feb fall is partly due to base effects

related to food and transport, but more generally a decline this year should be

related to fading exchange rate effects." Initial upside Cable interest lies at

1.4100 then 1.4104, the 61.8% Fibo of the 1.4346-1.3712 move, then 1.4196 the

76.4% Fibo of the same move. EURGBP resistance lies at 0.8800, then the Mar 15

low at 0.8825. To the downside initial focus is on the Feb 8 low of 0.8732.