GBP/USD has ebbed 6 pips lower so far and.....>

CABLE: GBP/USD has ebbed 6 pips lower so far and last trades at $1.3042.

- Cable fell 52 pips yesterday, with GBP landing at the bottom of the G10 pile,

as the Guardian reported that Brexit discussions between the Tory & Labour

parties had "stalled" due to divisions re: post-Brexit deregulation, although a

Labour spokesman played down the report later in the day.

- Elsewhere, the latest UK labour market report indicated that wage growth has

stagnated despite strong jobs data.

- Initial support noted at $1.3031/27, which represent the Apr 9/8 low. A fall

through these levels would open up the lower Bollinger band (2%) at $1.2980. On

the topside, bulls look to the 200-HMA at $1.3073, ahead of the 100-HMA,

situated a further 8 pips above.

- UK focus turns to domestic CPI, which comes out later today. BoE Gov Carney

will speak alongside ECB's Villeroy, also today. Retail sales data will follow

on Thursday.