Drifted lower through Europe and NY Monday,...>

CABLE: Drifted lower through Europe and NY Monday, the rate extending the

corrective pullback from its US NFP recovery high of $1.2970, meeting initial

support at $1.2900 before it extended on to $1.2876 in NY afternoon trade,

closing the day at $1.2884. Some linked the move to UK polls, which have

suggested Labour making gains, though remain below the Conservatives. Brexit

Party Farage has threatened to stand candidates in every constituency which

could eat into Conservative support (Farage not standing himself as an MP), but

the slippage was seen in line with EUR/USD, as EUR/GBP continued to hold a tight

range around its 10-dma (currently Gbp0.8633). Traders also highlight the decent

sized option expiry or today's NY cut, strike $1.2900 for a total of Gbp1.5bln,

of which Gbp1.28bln are GBP calls. UST yields have also edged higher which has

provided the USD with a general lift.  

- Key UK Services PMI due at 0930GMT, market median 49.7 vs last 49.5. US ISM

non-mfg at 1500GMT main general focus. 

- Support $1.2875/70, $1.2850. Resistance seen into $1.2900 ahead of $1.2950.