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###POV: BREXIT EVENT RISK POINTS TO FURTHER...>

CABLE
CABLE: ###POV: BREXIT EVENT RISK POINTS TO FURTHER GBP DOWNSIDE
- Despite a minor corrective bounce on stronger UK Construction/Services PMI and
added support from hawkish remarks from BoE Saunders in recent sessions, Brexit
uncertainty outweighs and still sees the risk for GBP as lower.
- PM May intends to convince her cabinet to accept a softer version of Brexit at
her country residence on Friday. Failure to do so could see minister
resignations, increasing the risk of a leadership challenge and a collapse of
the Conservative Party.
- Seasonal trends in July have seen GBPUSD lower 5 of the last 6 years. The MNI
FX Technical Signal Monitor is currently generating bearish momentum on a daily
and cloud basis.
- EURGBP 1m RR trade near 2-month highs in favour of EUR calls.
RISK - BoE Governor Carney is scheduled to speak in Newcastle today at 1000GMT.
A more hawkish tone could endorse a rate hike in August (MNI Pinch 72%)
triggering a short sharp squeeze.

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