Dropped back to $1.3165 through the 1600GMT...>

CABLE: Dropped back to $1.3165 through the 1600GMT fix, off an earlier spike

high of $1.3246 as market reacted to Brexit headlines. Rate had recovered to

hold around $1.3200 into the close and ahead of last night's amendment votes in

Parliament. The passing of the Letwin amendment to allow Parliament Indicative

votes on Brexit options during Tuesday's session is hoped to produce a clearer

picture of what the UK Parliament would actually support, hopefully finding a

way out of the current impasse. The passage of this amendment spiked cable up to

$1.3224 in early Asia as market sees this opening the way toward a softer

Brexit. However, No-deal remains one of the options, alongside PM May's Brexit

Bill, Revoking Article50, Second Referendum, Norway type Customs Union, Canada

Free Trade arrangement, remaining in the EU. Vote results are not binding and

will only provide an indication. Sterling lost its initial upside momentum and

drifted off to $1.3178 into Europe where it met fresh demand that has edged it

back above $1.3200. Brexit ping-pong likely to continue until definite proposals

are made.

- UK Housing Loans 0930GMT. BOE Deputy Gov. Broadbent testifies at 1100GMT.