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Early Europe dip to $1.2807 Tuesday quickly...>

CABLE
MNI (London)
CABLE: Early Europe dip to $1.2807 Tuesday quickly attracted buyers as rate
bounced back to $1.2905 into the 1600GMT fix. Rate dropped back to $1.2842
before closing the day at $1.2870. Brexit developments continue to dictate
sterling moves. Tuesday's eventual agreement to support a government bill to
allow for a snap election on Dec12 (expected to pass the House of Lords) had
little major effect on the pound, the outcome will now become the focus (watch
the polls). Trade in Asia was described as generally subdued, as market there
turned attention toward this evening's FOMC rate decision, with cable restricted
to a range of $1.2858/71, though picked up some fresh demand into Europe which
extended the topside to $1.2883. Moves seen in tandem with EUR/USD as EUR/GBP
holds close to its 10-dma(Gbp0.8629). Month-end approaching and early models
suggest USD sales to be seen vs the EUR and GBP. A light UK data calendar
Wednesday. Weekly questions to the PM to be watched(1200GMT). 
- Cable support $1.2842, $1.2810/00, $1.2789. Resistance $1.2905, $1.2927,
$1.2950. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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