Positive risk outlook has provided the........>

CABLE: Positive risk outlook has provided the drive to squeeze out cable shorts,

the break of the May8 high of $1.2467 Monday gave a technical boost as rate

pushed on initially to $1.2488 before moving on to $1.2507, holding shy of

technical resistance area between $1.2509/16(76.4% $1.2643-1.2076/May4 high).

Corrective pullback remained shallow, rate touching $1.2483 in early Asia before

traders reacted to reports in the UK press suggesting that the UK is showing

signs of compromise in its negotiations with the EU (The Times and Daily

Express). Cable jumped to $1.2525 but momentum quickly faded before rate eased

off to $1.2479 ahead of Europe. Early demand into Europe has rate back above

$1.25, though momentum so far not inspiring. Traders suggest that short cable

positions remain and every push higher puts added pressure on them.

- Cable support $1.2480, $1.2467, $1.2450, $1.2426. Resistance $1.2525, $1.2550,

$1.2580, $1.2600, $1.2643.

- A light data and event calendar for Tuesday but market will watch for any

further developments from the UK/EU negotiations.