Hawkish comments from Fed's Powell late.......>

CABLE: Hawkish comments from Fed's Powell late Wednesday provided the USD with

the boost that took rate through Tuesday's low of $1.2941 to $1.2925 before it

recovered to $1.2955 into Asia. Higher UST yields continued to keep the USD firm

in Asia and eventually pressed cable to a fresh low of $1.2922, with recovery

efforts capped around $1.2935 ahead of Europe. Sterling demand into Europe has

allowed rate to extend recovery to $1.2945 but underlying tone remains bearish.

Move lower in cable however is seen meeting some support offered by the downside

pressure on EUR/GBP, the rate having made a show under its long term support

line, drawn off Apr17 low, with recovery efforts seen meeting willing sellers.

Cross currently trades around Gbp0.8872, off Weds low of Gbp0.8859(earlier Asian

low of Gbp0.8861). Conservative Conference now ended has market on Brexit

headline watch in the aftermath. UST yields remain the key driver as we head

toward Friday's US Employment Report. Cable support $1.2922 ahead of stronger

area between $1.2910/00. Talk of resistance beginning from around $1.2960 and

extending toward $1.3000.