Dovish BoE rhetoric from over the weekend.....>

CABLE: Dovish BoE rhetoric from over the weekend has sapped strength from

sterling at the start to the week. MPC member Vlieghe told the FT that he is set

to back an interest-rate cut at the upcoming meeting (Jan 30), should he see no

signs that the economy is picking up after the general election. He noted that

this month's data may "swing [his call] one way or the other."

- Vlieghe's comments come after last week saw BoE Governor Carney point to an

ample amount of policy ammunition the MPC could use to fight a potential

economic downturn. His BoE colleague Tenreyro said on Friday that she could vote

to trim the borrowing costs if sluggish growth persists.

- Against this backdrop, the focus turns to a decent slew of UK data releases.

These include monthly economic indicators (due later today), inflation data

(Wednesday) and retail sales (Friday). BoE's Saunders speaks on Wednesday.

- Cable has moved away from an earlier low of $1.3020; last trades -20 pips at

$1.3044. The 50-DMA at $1.3019 has provided support so far. A break below there

& the Jan 9 low of $1.3013 would please bears, bringing the Dec 23 trough at

$1.2905 into focus. Bulls keep an eye on the 21-DMA at $1.3090.