### - POV - Cable retains an underlying.......>

CABLE: ### - POV - Cable retains an underlying buoyant tone, helped by the fact

that recent corrective pullbacks have been held by the $1.3470/65 area. Rate

currently trades around $1.3525 as traders await first key data following last

week's hawkish BOE MPC Minutes, though BOE Carney Monday was seen dampening down

rate hike/sterling enthusiasm. However, market knows there is a 25bp hike in the

pipeline, most of the major banks having brought in their call to November.

Strong UK Retail Sales (recent BRC data stronger than expected) would boost

sterling prospects and expose Tuesday's high of $1.3552 ahead of $1.3585 then

recent high of $1.3618. If BOE do hike in November where then for UK rates. All

they will have done is corrected the emergency 25 bp cut imposed following the

Brexit vote last year with rhetoric warning that this will not signal a hiking

cycle unless data warrants it and Brexit concerns are allayed. German election

Sunday with Merkel expected to win with Brexit negotiations likely to become

'more serious' when France and Germany elections are out of the way. PM May

Florence speech Friday should provide the pre cursor to these deeper

discussions.