GBP/USD last trades at C$1.3179, 9 pips.......>

CABLE: GBP/USD last trades at C$1.3179, 9 pips better off. A ~12 pip leg higher

was noted after BBG ran a headline from the Telegraph, which stated that PM

May's cabinet exp. the current Brexit deal to be defeated in next week's

parliamentary vote.

- The rate finished 8 pips lower yesterday, although the Asia-Pac session saw

GBP weighed on by an earlier RTRS source report suggesting that the UK-EU talks

re: the withdrawal agreement "didn't go well." Negotiations involving UK's Cox,

UK's Barclay and EU's Barnier resumed yesterday, but failed to produce much

progress. The press reported that EU officials are increasingly sceptical

towards whether reaching agreement with their UK counterparts is feasible. Worth

mentioning BoE's Saunders spoke yesterday, stating that the BoE will be patient

re: rate hikes until the uncertainty around Brexit dissipates.

- The initial bullish target is provided by the 100-HMA at $1.3190. Above here

opens the 200-HMA at $1.3201. Conversely, the initial bearish attention is drawn

to $1.3124, which limited losses yesterday.

- BoE's Tenreyro is set to speak later today.