GBP/USD meandered yesterday, finishing........>

CABLE: GBP/USD meandered yesterday, finishing slightly below neutral levels. The

rate slipped after the release of UK inflation data, though the move was a bit

delayed, as CPI slowed more than expected, to +0.8% Y/Y. A 1pp deviation from

the 2% inflation target means that the BoE Gov will have to write a letter to

the Cll'r, outlining the central bank's plan to bring inflation back towards the

target. Separately, BoE Gov Bailey testified to lawmakers yesterday and the main

point of note was his comment that the central bank doesn't rule negative

interest rates out (or in) and is "keeping the tools under active review".

- The Brexit process remains a rocky road for UK & EU negotiators, with chief

negotiators exchanging words of criticism yesterday. Elsewhere, the UK pledged

that "there will be no new physical customs infrastructure" in Northern Ireland.

- GBP/USD sits -11 pips at $1.2234. A fall through May 19 low of $1.2184,

towards May 18 low of $1.2076, a key support level. Bulls keep an eye on the

50-DMA at $1.2276; above here opens May 19 peak at $1.2296.

- Local preliminary Markit PMI readings are due today, while retail sales will

be published tomorrow.