Initial Brexit linked, and general risk-off...>

CABLE: Initial Brexit linked, and general risk-off sentiment, led sterling sales

Monday which saw cable pressed to an extended low of $1.2828. Move was tempered

by stronger EUR sales, following breaks of support levels at $1.1300 and

$1.1250, which reversed an early EUR/GBP rally which in turn saw cable jump up

to $1.2936. However, continued risk concerns acted to weigh back on cable and

pressed rate back to $1.2844 ahead of the close. Risk appetite was given a boost

in Asia on suspected intervention in USD/CNY, along with reports that a senior

Chinese official will travel to the US to pave the way for a meeting between US

Trump and China Xi. Cable edged its way back up to $1.2889, eased to $1.2872

ahead of Europe but early European demand has edged rate back toward that high.

Resistance remains at $1.2889 ahead of $1.2900/15. Support $1.2844 ahead of

$1.2828. UK Employment/Earnings data due at 0930GMT. Unemployment expected to

remain at 4.0% with more interest on earnings. Median forecast Average Weekly

Earnings 3.0%, ex-bonus 3.1% 3M y/y. However, Brexit headlines remain a key

driver, a UK Govt Cabinet meeting today which could generate such.