Drifted off to $1.2281 during the early.......>

CABLE: Drifted off to $1.2281 during the early part of the day, as rate extended

its corrective pullback from Wednesday's high of $1.2363, the move aided by a

souring of risk appetite in Asia as market reacted to comments from the US over

HK as well as strong demand for EUR/GBP emerging in Europe (no confirmation but

today would be the day for sovereign rebalancing for Friday value). EUR gained a

decent lift on reports that the EU COVID recovery plan would be larger than

initially suggested, the spike higher in EUR/USD dragged cable up to $1.2354 but

the upside pressure on EUR/GBP acted to weigh back on cable, which along with

pessimistic comments from the UK Brexit Minister, acted to press rate down to

$1.2206 into the 1600BST fix. Fresh demand emerged post fix, drawn in by the

positive action in US equities, with EUR/GBP backing away from challenging

resistance into Gbp0.9000. Cable recovered back above $1.2250 in NY afternoon

trade. 

- Focus Thursday on US data though risk remains key driver ahead of month-end. 

- Support $1.2210/00, $1.2189/86 ahead of stronger support at $1.2160.

Resistance $1.2260, $1.2281, $1.2354/63.