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

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.