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Extends recovery, off Tuesday's low of........>

MNI (London)
CABLE: Extends recovery, off Tuesday's low of $1.3205(2018 low), to $1.3322 as
recent, risk linked, USD gains get pared. Risk aversion fading but elements for
Tuesday's moves still around but focus currently seen shifting over to month-end
flows with most models suggesting USD sales. The signal seen strong vs EUR and
GBP, according to one major bank's model. Some of cable's recovery though seen
tempered by month-end EUR/GBP demand, the cross having edged to an extended high
of Gbp0.8784, currently trades around Gbp0.8774 having seen lows Tuesday of
Gbp0.8698. Cable resistance seen at the May29 high of $1.3325, a move above to
find next expected resistance between $1.3340/50. Support $1.3278(Asia low)
ahead of $1.3240/30 then $1.3205. UK Money Supply and Mortgage Approvals provide
the domestic interest. EZ flash Inflation data at 0900GMT provides main interest
for this morning. EUR/GBP resistance remains at Gbp0.8795/00, a move above to
expose the 1.0% envelope top at Gbp0.8843 (drawn around the 10-dma). Cross
support noted at Gbp0.8765/55. 
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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