Cable underperformed in early dealing on......>

CABLE: Cable underperformed in early dealing on Monday opening lower on the back

of fresh uncertainty surrounding Brexit matters, but recovered amid broader USD

weakness and last trades at $1.3155, virtually unchanged in early Asia-Pacific

trade on Tuesday.

- On Monday PM May told the Commons that a Brexit deal was "still possible

despite differences with the EU" after negotiations with Brussels hit another

deadlock. At the same time EU's Donald Tusk wrote a no-deal Brexit is "more

possible than ever before" in a letter to EU leaders.

- From a technical perspective breaking Monday's intraday high ($1.3182) would

see bulls target the Sep 20 high ($1.3298). Bears need a close below $1.3086 to

shift focus to last week's low at $1.3028.

- Focus this week includes the EU summit on Oct 18-19, when the EU expects to

settle the terms of the divorce agreement. Elsewhere domestic UK data will draw

some attention, with the labour market report due Tuesday, CPI due Wednesday &

retail sales due Thursday. On the BoE front Cunliffe & Broadbent will speak on

Wednesday, with Governor Carney due to speak on Friday.