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Disappointing UK GDP data added to the........>

MNI (London)
CABLE: Disappointing UK GDP data added to the ongoing Brexit no-deal concerns,
which along with speculation that the Johnson Govt will call a snap general
election, acted to press sterling lower on Friday. Cable was pressed to an
extended low of $1.2025 into Friday's close. Asia opened on a risk off tone,
following Friday tweets from US Trump (upped ante in the US/China trade spat,
criticized the Fed, though downplayed USD intervention speculation), which saw
cable push up to $1.2073, helped in part by press reports suggesting political
moves to prevent PM Johnson's 'do or die' pledge for Brexit on Oct31, and force
another Brexit extension. This early rally proved short lived and rate sank to a
fresh low of $1.2015 before it recovered on the back of the lower than forecast
PBOC USD/CNY fix to hold around $1.2040 for the balance of the session. Fresh
demand into Europe has lifted rate on to $1.2050 at writing. Resistance noted at
$1.2088 ahead of $1.2100. Support $1.2015/00, break to expose $1.1986(Jan16-2017
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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