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CABLE
MNI (London)
CABLE: Optimism that PM Johnson is closing in on a Brexit deal provided sterling
with a general boost Friday, taking rate on to an extended high of $1.2507 into
the close. Opening trade in Asia saw rate mark an extended high of $1.2523
before it fell back to $1.2465 then settled around $1.2500. Opening volatility
seen as an early reaction to the weekend strikes on Saudi oil facilities, though
oil supply concerns were tempered to some extent as US Trump said he would
authorise SPR oil release. PM Johnson meeting EU leaders today has prompted some
longs to pare back sterling exposure in case of disappointment. Headlines will
be watched for. This paring back of longs continues into Europe as rate eases to
$1.2454, with rate holding heavy at writing. Expect some support into $1.2450
ahead of $1.2427 and into $1.2400. Resistance seen into $1.2500, the level
holding the strike of expiring options for today's NY cut, Gbp1.19bln, interest
seen mixed. Above exposes $1.2507 then $1.2523, with $1.2527 the short term
target, 1.618% swing $1.2310-1.1959.
- A light data calendar Monday. Focus this week on Brexit developments, UK CPI
Wednesday, Retail Sales and BOE MPC Thursday. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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