On Tuesday morning BofAML noted that..........>

CABLE: On Tuesday morning BofAML noted that "having held a strong conviction for

a higher GBP over the past month our FX Strategist Kamal Sharma is formalising

his view and opens a long GBP/USD position via a $1.35, 6-month call."

- Sharma's reasoning includes:

- The path is unlikely to be a smooth one hence our preference to express a

bullish GBP/USD via options.

- No-deal rhetoric has reduced in intensity and Barnier hopes to conclude a deal

by mid-November. November 13th is emerging as a potential emergency EU Summit

date.

- The bar to an agreement is relatively low and for markets, the key is

transition which we think lifts the political risk premium which has been

driving GBP.

- UK data, which has been broadly resilient has had little impact on sterling

which could change once the deal is reached. In TWI terms, GBP looks cheap

versus rate spreads.