Having earlier touched $1.2897, GBPUSD was....>

CABLE: Having earlier touched $1.2897, GBPUSD was quick to pare losses with a

reversal to highs of $1.2943. Focus turns to UK data at 0830GMT from GDP, Trade,

Mfg/Industrial Production and Construction. GDP in June rose by 0.4% on a 3m/3m

basis and 0.1% m/m. The 0.4% q/q rise was primarily driven from a strong showing

in services on a 3m/3m basis at 0.5%, but interestingly June saw flat m/m growth

as the World Cup and weather drove consumers away from the high street.

Construction is likely to have moved back after order backlogs artificially

facilitated June's growth of 1.4% m/m and 2.2% y/y. Industrial production has

been on a bad run leading to it technically being in recession in June after two

quarters of negative q/q growth. The previous trade balance for the month of

June was a deficit of stg2.9bn.