EUR came under pressure through Monday as.....>

CABLE: EUR came under pressure through Monday as the single currency pared

month-end gains, as well as an extended gain Friday seen during the European

holiday. The move lower overtook the pressure on the pound which in turn allowed

EUR/GBP to reverse off its high (seen into the NY open) of Gbp0.8814 and

provided buoyancy for cable. This latter rate had been pressed to a low of

$1.2406 into NY before it recovered through the NY afternoon to $1.2447. This

recovery in sterling continued in a holiday thinned Asian session as cable edged

on to $1.2474, whilst EUR/GBP applied pressure on its key 10-dma, currently at

Gbp0.8746(low Gbp into Europe Gbp0.8743). Suggestion that the rise in sterling

into Asia was driven by UK and US to begin FTA negotiations today, whilst EUR

recovery was countered by press reports suggesting resentment in certain parts

of Italy toward the EU. Focus today on UK Svcs PMI with expectations that the

final number could ease further to 11.0, vs flash 12.3. BOE MonPol

Thursday(earlier release at 0600GMT) though most view June with more interest in

regard to QE expansion. 

- Cable support $1.2410/1.2390, $1.2360. Resistance $1.2474/76, $1.2500.