GBP/USD dipped into the London morning........>

CABLE: GBP/USD dipped into the London morning yesterday amid a bout of demand

for the greenback, inspired by a round of expectedly dire PMI figures from

across the Eurozone. This was coupled with a collapse in UK Markit/CIPS

Construction PMI, which plunged to 8.2 from 39.3. The 50-DMA at $1.2399 gave way

in the process as cable headed lower, extending losses into the close.

- Spot remains heavy, last trading -26 pips at $1.2324. Bears would be pleased

by a drop below $1.2248, where the rate bottomed out on Apr 21. The next

downside target is provided by Apr 7 low of $1.2166. Bullish focus falls on Apr

30.14 highs of $1.2643/48 and a break here would expose the 200-DMA at $1.2659.

- The monetary policy decision from the BoE is the key point of note on the UK

docket during the remainder of this week. Our usual comprehensive preview can be

found at http://tiny.cc/BoE0520

- UK PM Johnson said that the country will begin relaxing some of the lockdown

measures on Monday. The gov't is looking into ways of ensuring that the econ can

move into a new normal. Worry surrounding the local Covid-19 situation remains,

with the case count welling past 200k & the number of deaths topping 30k.