General risk aversion, along with market......>

CABLE: General risk aversion, along with market reaction to the stronger than

expected showing by Labour's Corbyn in Tuesday night's Johnson/Corbyn debate,

had acted to press cable down to $1.2888, extending the corrective pullback away

from Monday's high of $1.2985. However, PM Johnson's lead in the polls,

suggesting an expected comfortable majority result in the Dec12 election, so

that he can get his Brexit Bill passed, continued to provide underlying

buoyancy. Traders have also mentioned that long term market remains short

sterling and will be active into any sterling dips. Cable recovered to $1.2929

in NY, settled around $1.2920 into the close. Fresh demand in Asia allowed for

recovery to continue, though at a slow pace, to $1.2933 but had settled back

below $1.2930 into Europe. EUR/GBP continues to trade just under its 10-dma and

seen providing sterling with some added buoyancy. A break and clear of the

10-dma, currently at Gbp0.8573, could provide signal for cable to turn lower. 

- Cable support $1.2925/15, $1.2890/85. Resistance $1.2933, $1.2954, $1.2970.

- Option expiries $1.2945-55($834mln), $1.2960-65(Gbp577mln),

$1.2990-1.3000(Gbp1.81bln)