Hurdles placed in PM Johnson's way to use a...>

CABLE: Hurdles placed in PM Johnson's way to use a no-deal Brexit as a

bargaining tool saw sterling pare losses last week. Cable, which had seen a low

of $1.1959 on Tue (Sep03) managed to extend its recovery to $1.2354 by Thu

(Sep05) as PM Johnson failed to break the impasse by calling for a general

election (didn't reach the 2.3 majority to allow). Rate drifted off through

Friday trade, touched $1.2280, with Asia this morning extending the move to

$1.2265. Sterling saw some pressure as market reacted to the resignation of

cabinet member Amber Rudd. Another vote in parliament for a general election

expected Monday, though again facing defeat. Failure could see PM Johnson forced

by the courts to ask the EU for another 3-month Brexit extension, though press

reports suggest he may send an additional note saying that the UK Govt doesn't

want this.

- Brexit manoeuvring continues as main directional driver for sterling. BOE MPC

Vlieghe speaks at 0800GMT ahead of UK May-Jul GDP (median -0.1%) and Trade data.

- Support $1.2265/60, $1.2235/30, $1.2210/00. Resistance $1.2300/10, $1.2350/55.