GBP struggled yet again on Wednesday, as......>

CABLE: GBP struggled yet again on Wednesday, as the latest set of inflation data

broadly missed estimates. This prompted a $1.3010 print in GBP/USD, representing

a fresh YtD low, although rates markets were relatively unchanged after the

data. MNI's PINCH model still sees the probability of an August BoE rate hike at

just under 80%.

- GBP/USD calls were in vogue, with focus on expiries just after the BoE's Aug

rate decision, with strikes layered from $1.3150-1.3500.

- There was a late, limited relief rally on a report that an extension to the

Article 50 deadline is being discussed in the backrooms of Brussels, as MEPs &

officials from EU member states weigh up plans to avoid a cliff-edge Brexit

(although the horizons touted vary).

- GBP/USD last $1.3075, support noted at the aforementioned YtD low ($1.3010)

with resistance at the 61.8%/76.4% retracements of the move from $1.3120 to

$1.3010 ($1.3078/94), which has seemingly limited cable to a high of $1.3083.

- Focus now turns to today's UK retail sales release, a written interview with

BoE's Tenreyro on Friday & an address from BoE's Broadbent on Monday.