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Headlines carried by Reuters in early Asia,...>

CABLE
MNI (London)
CABLE: Headlines carried by Reuters in early Asia, suggesting UK and EU close to
achieving an orderly Brexit, taken from a PM May article in Die Welt, which
along with FT report that Barnier ready to improve backstop plans for preventing
a hard Irish border, acted to boost sterling taking cable to an extended high of
$1.3176, while EUR/GBP eased on to a fresh pullback low of Gbp0.8865. BOE
Vlieghe comments in the Newcastle Journal, "workers' pay is set to rise after
years of low growth but not at any great rate." was also grasped to help buoy
sterling. Reactive advance in cable met headwind resistance from a generally
strong USD (UST yields) and eased off to $1.3142. Rate recouped some lost ground
into Europe, currently trading around $1.3158. Recovery lagged EUR/USD's early
rise, allowing EUR/GBP to edge back to Gbp0.8878. UK Inflation data at 0830GMT
provides the key data interest(market median 0.5%mm, 2.4%yy; a slight softening
due to petrol prices and relative sterling strength), with BOE Haldane speaking
in Latvia at 0800GMT ahead. Resistance remains at $1.3176 ahead of
$1.3192/1.3202. Support $1.3140. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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