Continued fall out from Wednesday's FOMC,.....>

CABLE: Continued fall out from Wednesday's FOMC, market seeing door opened for a

potential July rate cut, allowed cable to extend recovery to $1.2727, helped in

part by positioning ahead of the BOE MPC rate announcement. However, BOE was

more dovish than expected, vote to hold rates was unanimous (despite some

suggestion that up to 2 members could have dissented) which knocked sterling off

highs, though met support at $1.2672 before it edged back to settle above

$1.2700 into the close. Continued consolidation in Asia until rate lifted to

$1.2725, as USD/JPY was sold off on risk aversion linked to a NY Times report

that Trump had approved a retaliatory strike against Iran (following a shooting

down of a US drone), though later pulled back. As initial risk off react faded

cable eased back toward $1.2700, trading down to $1.2683 into early Europe.

- Support seen at the NY low of $1.2672 ahead of $1.2650 and $1.2635/39.

Resistance $1.2725/27 ahead of recent highs of $1.2759/63.

- Gove knocked out of Conservative leadership race. Johnson and Hunt now face

off in a month long campaign.