Comments from Germany Merkel and France.......>

CABLE: Comments from Germany Merkel and France Macron concerning a chance for

finding a solution to the Irish back stop provided a boost for sterling

Thursday, took cable to an extended high of $1.2273, the rate retaining an

underlying buoyant tone through to its close at $1.2251. Early demand in Asia

saw rate touch a high of $1.2264 before rate came under pressure, sank back to

$1.2222 with Asian traders suggesting the catalyst was sales of GBP/NZD prompted

by comments from RBNZ Orr which provided the NZD with a general boost. Cable

recovered to $1.2237 into Europe but has since come under another wave of sell

interest which has pressed it down to $1.2220 at writing. Analysts looking at

Thursday's comments note that they come with caveats, Macron suggesting that any

agreement likely to be close to the original one agreed with former PM May. 

- A light data calendar for the UK Friday. Market focus on the appearance of Fed

Powell at the Jackson Hole Symposium, most expecting him to be modestly dovish,

keeping alive expectations for further cuts at the Sep and Dec FOMC meetings. 

- Cable support $1.2220, $1.2200, $1.2180. Resistance $1.2265/75, $1.2300/10.