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General USD demand added to sterling's woes...>

CABLE
MNI (London)
CABLE: General USD demand added to sterling's woes Friday, saw rate drift off to
an eventual early NY low of $1.2530. Rate did manage to recover through the
balance of the NY day, touched $1.2589 ahead of the close. Pre Tokyo trade saw
rate trade above $1.2600, but quickly lost ground as Tokyo began trading. Rate
traded through the main part of the Asian session between $1.2571-93, though was
nudging back toward $1.2600 in early Europe. Brexit headlines remain the key
driver, PM May resolute that she does not support a second Brexit referendum,
despite reported growing support for such a move. 
- BOE MPC rate decision Thursday. No change widely expected, with rate path also
to be determined by Brexit developments. Chances for a hike in
February(Inflation Report) seen fading if no advance made. 
- UK Inflation data due Wednesday, Retail Sales Thursday, Q3 GDP Friday.
- Cable support $1.2570, $1.2550-30. Resistance $1.2600, $1.2625/35.    
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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