EUR/GBP has edged lower in early......>

EURO-STERLING: EUR/GBP has edged lower in early dealing, last ~10 pips softer at

GBP0.8738, after printing a session low of GBP0.8730 on the back of the latest

Times headlines re: Brexit. The paper reported that "senior EU figures have

indicated that they are prepared to offer Theresa May an independent mechanism

by which Britain could end a temporary customs agreement with the bloc." Earlier

reports had indicated there was little chance of a deal this week, although

there were suggestions that the UK wants a late-Nov Brexit summit with the EU.

- This comes ahead of a UK cabinet meeting on Tuesday, with the FT reporting

that "Theresa May will on Tuesday pile pressure on Eurosceptic cabinet ministers

to back a Brexit deal that could be signed before the end of the month, after

Irish prime minister Leo Varadkar offered a compromise on the Northern Ireland

border."

- Mkt dealing with the Times story with some trepidation owing to recent

headline flow/denials. Support noted at the Oct 10 low GBP0.8723, with a break

opening up the figure. Bulls need a move back above the Nov 02 high GBP0.8801.