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

MNI (London)
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.  
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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