Failure early Thursday to extend recent.......>

CABLE: Failure early Thursday to extend recent gains above $1.3100 saw rate ease

through the rest of the day to a low of $1.3012 before it recovered to $1.3065

into the close. EUR/GBP was again seen as a main driver of sterling gains as the

pound took full advantage of the EUR's downturn following the change in

language, regarding EZ growth in ECB Draghi's press conference. EUR/GBP extended

recent losses to Gbp0.8652 in late NY. Sterling gained a further boost in Asia

on a press report suggesting the DUP could change stance to support PM May's

Brexit plan B, though wants a revised backstop. Cable spiked through $1.3100 to

$1.3129, eventually edged on to $1.3139 as other news outlets picked up the

story. Though a move like this by the DUP would be seen as positive it could in

turn negate calls for a second referendum (which some see as a stronger positive

for sterling). Early Europe greeted the Asian rally, sold back into the rise to

squeeze out weaker spec longs as rate made a brief show back under $1.3100. Rate

currently trades around $1.3107. UK Housing Loans at 0930GMT and CBI Reported

Sales provide domestic data interest this morning. US data could be postponed

due to Govt shutdown.