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Last week's disappointing data, along with....>

MNI (London)
CABLE: Last week's disappointing data, along with BOE Carney comments that were
seen easing May hike expectations, weighed on cable as rate slipped to an
extended low of $1.3997, extending the corrective pullback away from the freshly
posted post-Brexit high of $1.4377(Apr17). Bloomberg data show cable touched
$1.3993 in early Asia before rate recovered to hold around $1.4020 into Europe.
Rate has found some support into the session as it lifts on to $1.4027 at
writing. Takeda reported to have upped its bid for UK listed Shire to Gbp44bn,
and Canada Star Group paying Gbp3.4bn for UK Sky Bet have provided the pound
with some support though political concerns, weekend press suggested a U-turn by
PM May concerning remaining in a custom union with the EU(since rejected by
Downing Street) seen providing the counter. Some bank reports have suggested
that market would be wrong to take its eye completely off the chance of a May
hike. Cable currently trades outside of its 1.0% envelope (around 10-dma), the
base today coming in at $1.4035(rate normally doesn't stay outside for too long,
though the 10-dma will move lower as rate holds current levels). UK Q1 GDP due
Friday the domestic data focus this week. 
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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