Positive Brexit headline began to boost.......>

CABLE: Positive Brexit headline began to boost sterling's recovery

Wednesday(away from Tuesday's low of $1.2696), cable getting an added lift to

$1.2831 on market reaction to reported comments from UK Brexit Secretary Raab to

expect a deal by Nov21. On analysis of the comment it deflated sterling

enthusiasm and rate dropped back to $1.2742. However, sterling retained an

underlying firm tone, helped by technicals which had suggested earlier in the

day a positive turn. Rate settled around $1.2780 into the close. Early

consolidation in Asia before The Times produced headlines which suggested PM May

had secured a deal with the EU on financial services which spiked rate up to

$1.2856. Rate settled back on $1.2838 as Asia awaited Europe's reaction to the

press report. Fresh demand emerged which lifted cable to an extended high of

$1.2877. No denial so far to the news, though market will be wary of any

retraction. Next resistance noted around $1.2900 ahead of $1.2920. UK Mfg PMI at

0930GMT but overshadowed by the BOE rate decision at 1200GMT. No change widely

expected, Brexit concerns counter arguments for a hike based on improved

data/wages, focus on press conference at 1230GMT.