GBP drew a bid Wednesday, after initially.....>

CABLE: GBP drew a bid Wednesday, after initially being knocked on the

announcement of a Tory party leadership vote. Cable recovered, trading above

$1.2600 ahead of the vote on expectations that PM May would be victorious, which

came to fruition. Volatility on the announcement saw an intraday high printed,

followed by a brief breach below $1.2600. Focus ahead of the vote was on her

margin of victory, with the PM gaining a margin of 83 votes, with most

suggesting that the vote continues to point to difficulties re: the passage of

the current Brexit deal through parliament. Rate last $1.2640. Bulls need to

close the gap on Monday's open at $1.2754. Initial support is noted at

Wednesday's low of $1.2478. 

- Focus now moves on to what assurances the PM will receive from the EU re: the

backstop. RTRS source reports have suggested that "a draft EU document includes

only the possibility the bloc would look into giving more assurances to Britain

over the Irish backstop." Elsewhere, the Telegraph reported that "the EU is

poised to reject May's demands for 'legally binding assurances' that the Irish

backstop will only ever be temporary." Focus on May's journey to Brussels Thurs.