Corrective pullback away from Wednesday's.....>

CABLE: Corrective pullback away from Wednesday's month-end fix high of $1.2250

extended down to a fresh YTD low of $1.2080 Thursday before rate managed to

recover to $1.2171 during the NY afternoon. Move up was aided by US Trumps

comments concerning the imposition of additional tariffs on China imports.

However, the rally attracted fresh sellers which pressed rate back to $1.2117

ahead of the close. Rate recovered into Tokyo trade, edged to $1.2145, as USD's

were sold into the Tokyo fix, but those gains were quickly reversed as result of

the Brecon & Radnorshire by-election came through showing a gain for the Lib-Dem

candidate which in turn reduces the ruling government's majority to 1(even with

DUP support). Cable dropped back to $1.2091 but had reclaimed the $1.2100 handle

into early Europe. Rate currently trades around $1.2110.

- UK Markit/CIPS Construction PMI at 0830GMT provides domestic data interest but

overshadowed by this afternoon's US Employment report at 1230GMT(MNI median

163k, AHE 0.2%). Brexit headlines remain a key driver for sterling. 

- Support $1.2080, $1.2050. Resistance $1.2150, $1.2170, $1.2180/85.