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Friday's resignation announcement by PM May...>

CABLE
MNI (London)
CABLE: Friday's resignation announcement by PM May as leader of her Conservative
Party (steps down June 7th) prompted traders to continue paring back short
sterling positions, extended rate's recovery off Thursday's low of $1.2606 to
$1.2733 before it settled around $1.2713 into the close and ahead of the long
UK/US weekend. Sunday's European election results came in as widely expected,
Farage's Brexit Party badly bruising the ruling Conservatives, with the LibDems
able to overtake Labour. Looking at the results as a whole, Brexit Party gained
the largest vote but was matched by parties advocating a second
referendum/Remain. Early sterling enthusiasm edged rate to $1.2748 before Europe
pressed it back to $1.2668 in thin holiday trade Monday. Consolidation in Asia
saw rate confined to a tight $1.2669-83 range as markets there awaited the
return on UK markets and its reaction to the weekend results. Rate currently
trades around $1.2679 in a slow trading start. 
- A light UK calendar Tuesday.
- Support $1.2668, $1.2648/41 ahead of $1.2610/00. Resistance $1.2683,
$1.2690/1.2700, $1.2750.  
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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