Having seen a recovery high of $1.2970 in.....>

CABLE: Having seen a recovery high of $1.2970 in NY, off its initial US NFP

react low of $1.2935, the rate gradually stepped its way lower through the

balance of the NY session Friday, touched a low of $1.2927 before closing the

week around $1.2940. Sterling came under mild downside pressure in early Asian

trade, as markets reacted to weekend press reports that PM Johnson refused to

enter a pact with Farage's Brexit Party. Farage could announce today that his

Brexit Party will enter 600 candidates into the Dec12 election, however, this

outcome already showing big splits in his party as it could dent the

Conservatives at the polls which could make a smooth Brexit more difficult.

Cable recovered through a Tokyo thinned Asian session to $1.2943 before it

settled around $1.2935 into Europe. 

- UK Markit/CIPS Construction PMI at 0930GMT. (Services PMI due Tuesday Nov5). 

- BOE MPC rate announcement Thursday (no change widely expected). Inflation

Report and BOE Carney to speak the domestic highlight this week. 

- Decent sized $1.2900 expiry for Tuesday Gbp1.32bln could provide some

influence, though Brexit/Election remain the key drivers.