News that UK listed Shire's board had.........>

CABLE: News that UK listed Shire's board had recommended to shareholders to

accept the Takeda takeover offer allowed cable to extend its recent recovery off

lows of $1.3918 to $1.3997 Wednesday. However, reactive demand quickly faded and

the pound again succumbed to general USD strength(UST yield driven) allowing the

rate to ease back to $1.3924 in late NY. Move was led by EUR/USD which in turn

saw EUR/GBP extend its corrective pullback away from recent high of Gbp0.8792 to

Gbp0.8727(Asia low). Cable performed a slow recovery to $1.3950 in Asia, the USD

paring some of its recent gains as UST yields consolidated. Apart from UST

yields influences today to come from UK politics. A Commons vote on remaining in

the EU Customs Union after Brexit, though non-binding, to gauge lower house

sentiment. If Govt loses it could signal a preferred soft Brexit and provide

sterling with a lift, although such a result would embarrass the Govt. A binding

vote is due to take place next month. Support remains at $1.3924/18 ahead of

$1.3900-1.3890. Resistance $1.3950, $1.4000.