Despite the Letwin Amendment stalling the.....>

CABLE: Despite the Letwin Amendment stalling the vote on the Brexit deal at

Saturday's special parliament sitting sterling retained a firm feel into

European trade Monday. This along with general pressure on the USD allowed cable

to push above $1.30, pushed up to $1.3012 in Europe before it topped out at

$1.3013 in early NY. With momentum faltering, and the USD bouncing away from its

DXY support, the rate eased back before finding support at $1.2957. Positive

comment from US Trump on China-US trade talks provided risk with a lift in Asia

Tuesday, cable edged to $1.2987 into the European open before sellers emerged in

the new session which eased it back to $1.2968. Dips continue to attract demand

with rate currently trading around $1.2975. The second reading of the Withdrawl

Bill(published last night) today, with Govt expected to have enough votes to get

it through. If this proves to be the case it is expected to provide sterling

with another lift. Focus would then switch to the likely amendments that might

be attached in coming days. Bill failure the pound should come under pressure. 

- UK Borrowing data at 0830GMT, CBI data at 1000GMT provides the domestic

interest outside of Brexit.