Despite the underlying optimism that a........>

CABLE: Despite the underlying optimism that a Brexit deal can be struck between

the UK and Europe, which has been providing the recent buoyancy in the pound,

the N.Irish DUP provides the spanner in the works as it announces that the party

cannot support current suggestions on customs, consent, adding that there is a

lack of clarity on VAT. However, DUP add that they will continue to work with

the UK Govt. Without the support of the DUP in Parliament the Govt will face the

same hurdles that PM May had in getting an agreement passed. Market will watch

for developments, the DUP could finally agree, albeit grudgingly. 

- Cable has dropped below $1.2800 on these headlines, the rate touching $1.2750,

currently around $1.2770. 

- UK Retail Sales at 0830GMT a sideshow as Brexit remains the key driver.

- Cable support $1.2750, $1.2742 (61.8% $1.2658-1.2877), $1.2710(76.4%).

Resistance $1.2835, $1.2877.