Having extended its recovery away from........>

CABLE: Having extended its recovery away from Thursday's(Aug1) low of $1.2080 to

$1.2188 in early Asian trade Monday (Aug5) the rate corrected back, meeting

support ahead of $1.2100 (low $1.2102). Rate recovered to $1.2174, knocked back

to $1.2119 at the 1600BST fix, before it settled around $1.2140 into the close.

Early Asia touched $1.2136 before USD sales emerged, linked to USD/JPY's

reaction to US Treasury designation that China is a currency manipulator, pushed

cable up to $1.2168. Rate basically settled back around $1.2150 for the balance

of the session, finding decent support again around $1.2140 though topside

continued to meet resistance ahead of $1.2170. Cable's risk off driven recovery

lagged behind EUR/USD, which in turn allowed EUR/GBP to drive up to Gbp0.9250

before momentum faded. Cross fell back in line with EUR/USD, settling between

Gbp0.9210-20. 

- Brexit no-deal concerns continue and seen keeping sterling on the backfoot. 

- A light UK data calendar Tuesday. Watch developments between US-China, keep an

eye on Trump twitter feed.