News that UK and EU had agreed the text for...>

CABLE: News that UK and EU had agreed the text for Brexit provided sterling with

a boost Tuesday, taking the rate to an eventual react high of $1.3047 around the

London fix. However, analysts noted that this proposal needs to get Cabinet

approval (Cabinet Ministers have seen the text in private and will discuss today

at 1400GMT). To get Parliamentary approval comes with several hurdles but most

see this as the beginning of the end game. Rate struggled to hold react gains

and drifted off to $1.2944, but was seen picking up fresh demand ahead of the

Asian open. Late reaction to the news saw Asia spike rate up to $1.3036 before

momentum again faded and rate drifted off to $1.2982. Late session recovery to

$1.3014 met with some surprise by early European traders who have in turn

pressed rate down to $1.2980. Rate trades around $1.2990 at writing. UK CPI due

at 0930GMT, market median 0.2%mm, 2.5%yy. Brexit headlines to remain the key

driver of sterling, attention also on this afternoon's US CPI release. 

- Cable support $1.2980, $1.2955/45. Resistance $1.3020, $1.3047/52.