Positive react Tuesday to a news report.......>

CABLE: Positive react Tuesday to a news report suggesting the EU could offer the

whole of the UK a customs agreement. Reaction saw cable spike up to $1.3044,

having seen an earlier low of $1.2937, but enthusiasm quickly faded though rate

continued to meet decent support in the $1.2970/60 area on the pullback. Rate

settled around $1.2985 through to the close. Early consolidation in Asia kept

rate confined to a tight $1.2974-91 range, supported in part by the recovery in

Asian equities, led by China, which provided some relief to Tuesday's risk

aversion. Cable was pressed to an extended low of $1.2967 into the 0700BST fix,

the move seen USD led as EUR/GBP held around its 200-dma at Gbp0.8835. A light

UK data calendar Wednesday with attention remaining on Brexit headlines,

especially concerning PM May's meeting with the Party's 1922 Committee(48

letters needed if there is to be a vote of no confidence in the PM). As

mentioned, support remains between $1.2970/60 ahead of $1.2937, Resistance

$1.3000-05 ahead of Tuesday's high of $1.3044.