Eventual announcement the the Brexit draft....>

CABLE: Eventual announcement the the Brexit draft had passed Cabinet approval

saw cable spike to $1.3072, as it recovered off a pre announcement low of

$1.2882. Liquidity conditions were described as this and allowed for an

overshoot before rate eased to $1.2982 ahead of the close. Rate drifted off to

$1.2980 in early Asia before fresh demand emerged to take rate back above

$1.3000, edging it on to $1.3023 in opening European trade. Rate currently

trades around $1.3015. Brexit headlines to remain a key driver of sterling

strength with the presentation to Parliament expected to produce many headlines

for the algos to trade off. Possible Cabinet resignations, vote of confidence in

PM May in the offing with the spectre of a General Election, second referendum

become a possibility, though not so far a probability. UK Retail Sales due at

0930GMT and expected to show an improvement from Sep's data. Market median

0.2%mm ex-auto and incl auto; 3.4%yy ex, 2.8%yy incl. SOMA day with $17.4bn of

QE reversal which in previous actions has tended to boost the USD. Support

$1.2980, $1.2955/50. Resistance $1.3070, $1.3090/1.3100.