GBP/USD dropped yesterday as UK gov't.........>

CABLE: GBP/USD dropped yesterday as UK gov't unveiled its negotiating mandate

for upcoming trade talks with the EU. Sterling was pressured as PM Johnson said

that he's ready to walk away from the negotiating table if the next four months

don't convince him that the UK can strike a Canada-like deal with Brussels.

- Sales were limited as USD generally struggled on the back of aggressive

re-pricing of odds for a rate cut from the FOMC this year, amid a spreading

coronavirus epidemic.

- Cable trades +8 pips at $1.2895. Bears look at the Feb 20 low of $1.2849 as

their initial target. A break here would open up the Nov 22 low of $1.2824.

Bulls need to recover the 100- & 50-DMAs, located at $1.2989 & 1.3028

respectively, to gain some topside impetus.

- BoE's Cunliffe and Haldane will make appearances later today.