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

MNI (London)
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
- 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.   
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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