Optimism that PM Johnson is closing in on a...>

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.