Comments carried by one newswire that the.....>

CABLE: Comments carried by one newswire that the British & German gov'ts have

abandoned key Brexit demands, in favour of a vaguer plan, potentially easing the

path for Britain to strike a deal with the EU, saw cable spike to $1.2983 on

Weds, after some early pressure.

- Later in the day a German gov't spokesman noted that its position on Brexit

remains unchanged, which pressured GBP/USD back to $1.2873, before the rate

reclaimed $1.2900, last dealing at $1.2925 on the back of some modest USD

weakness in early Asia-Pacific dealing.

- Earlier in the session a stronger than exp. UK Services PMI release did little

for GBP, as the details of the survey revealed that business optimism had hit a

five-month low.

- The pair's short-term outlook has turned more neutral with bulls targeting a

break back above the 50-DMA ($1.3015), while bears focus on the $1.2800 level.

- Brexit developments remain key, with a quiet UK docket apparent for the

remainder of the week, ahead of next week's labour market report & GDP/output

data, which will be followed by the latest BoE MonPol decision.