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Friday's release of disappointing UK Q1.......>

CABLE
MNI (London)
CABLE: Friday's release of disappointing UK Q1 growth data knocked cable to an
eventual low of $1.3747 before being able to make a brief show back above
$1.3800 to $1.3808. Rate then settled between $1.3770/90 through to the close.
Early USD sales in Asia saw rate edge to $1.3804 before it dropped back to
$1.3766 as news of Home Secretary Amber Rudd's resignation hit the wires. Rate
did recover through the balance of the overnight session to $1.3793, holding
above $1.3780 at writing. The Rudd resignation brings politics back to the fore.
Rudd is a Remain supporter and market will watch who replaces her in the Cabinet
and their views concerning Brexit. Sterling remains on the defensive, EURGBP
back above Gbp0.8800 and with the chance of month-end demand to emerge could
take the cross higher. Cable support seen between $1.3765/50, a break to expose
the 2.0% envelope(10-dma) currently at $1.3711. Resistance $1.3800/10. BOE Andy
Haldane due to speak this morning at 0900GMT. With the USD remaining a key
driver in FX markets today's release of US PCE to be watched, along with the
Chicago Report ahead of Wednesday's FOMC announcement.  
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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