Despite comments from EU officials that the...>

CABLE: Despite comments from EU officials that the Withdrawl Agreement is not up

renegotiation sterling was still able to take advantage of the post FOMC

pressure on the USD following the dovish tone from the Fed/Fed Powell. Cable

rally picked up momentum as it moved through $1.3130 to a Wednesday high of

$1.3146. However, momentum quickly faded and rate dropped back below $1.3120,

though remained buoyed above $1.3100 into the close. Cable pivoted the $1.3120

in Asian trade, eventually climbing to a high of $1.3137, as the USD came under

further pressure (USD/JPY extended its post FOMC lows to Y108.70) before it

drifted off to $1.3123. Month-end and bank models are suggesting strong USD

sales to be seen at today's fixings, which should provide cable with some

buoyancy. EUR has outpaced GBP in its post FOMC gains vs the USD, allowing

EUR/GBP to extend its recovery to Gbp0.8764 where it has met decent resistance. 

In today's Asia-Pac session the Times reported that PM May is preparing to

encourage Labour MPs to back her Brexit deal with a cash injection into deprived

areas that voted to leave the EU.

- Cable support $1.3120, $1.3100. Resistance $1.3137 ahead of $1.3146/50.