General USD demand saw cable pare earlier.....>

CABLE: General USD demand saw cable pare earlier gains Thursday, which had seen

rate recover to a high of $1.2687 during the European morning. Early pullback

was contained around $1.2650 before early NY took back to $1.2683. Further USD

demand emerged through ECB Draghi's press conference which eased rate down to

$1.2614 around the London fix before it recovered to $1.2672 ahead of the close.

Sterling had enjoyed an underlying buoyant tone following PM May's Conservative

party confidence win, along with some positive anticipation for PM May's

appearance at the EU Summit in Brussels, but any rallies were seen greeted by

willing sellers. However, May failed to get the EU to shift its stance, only

getting a reiteration that any Back Stop on the Irish border issue would only be

a temporary measure, though hoped it would never have to be implemented. This is

not seen enough for May to win any Brexit deal vote (vote not before Christmas,

likely by Jan21). Brexit headlines remain the key driver of sterling. Data

interest US Retail Sales.

- Support $1.2600, $1.2585/80. Resistance $1.2667, $1.2687. $1.2650 expiry

Gbp1.16bn.