Corrective pullback from Thursday's (Jul18)...>

CABLE: Corrective pullback from Thursday's (Jul18) high of $1.2558 extended to a

low Tuesday of $1.2418 before rate bounced to $1.2482 as the Conservative

leadership voting results were announced. As widely expected Boris Johnson

secured the vote and will travel to Buckingham Palace today at 1330GMT where the

Queen will ask him to form a government and thus becoming the new PM. Johnson

has maintained that the UK will leave the EU on Oct31, using the threat of a

no-deal Brexit in his expected negotiations with the EU. Johnson Cabinet

appointments will be watched, expected to include Brexit leaning members. Cable

gave back part of its pre vote result gains, extending lows to $1.2428 in Asia,

but early Europe has picked up fresh demand which has lifted it back to $1.2450.

Brexit headline risk back to the fore for market direction. Johnson to speak

outside Downing St at 1600GMT. Cable support $1.2418, resistance $1.2482.

- BOE Haldane and Saunders spoke Tuesday, the former seeing the case for keeping

rates on hold at the next meeting, while the latter suggested that the BOE is

not bound by hike forecasts.