GBP has garnered a modest bid on the back.....>

CABLE: GBP has garnered a modest bid on the back of the latest Times headlines

re: Brexit. The paper reported that reported that "senior EU figures have

indicated that they are prepared to offer Theresa May an independent mechanism

by which Britain could end a temporary customs agreement with the bloc." Earlier

reports had indicated there was little chance of a deal this week, although

there were suggestions that the UK wants a late-Nov Brexit summit with the EU.

- This comes ahead of a UK cabinet meeting on Tuesday, with the FT reporting

that "Theresa May will on Tuesday pile pressure on Eurosceptic cabinet ministers

to back a Brexit deal that could be signed before the end of the month, after

Irish prime minister Leo Varadkar offered a compromise on the Northern Ireland

border."

- Brexit Sec. Raab & UK Foreign Minister Hunt are expected to insist on control

of a Brexit backstop.

- GBP/USD last $1.3062. Rate managed to close marginally above the 100-DMA, with

bulls looking to support-turned-resistance from the Aug low at $1.3080. A break

opens the Oct 16 low at $1.3141.