### -POV- Reversal of fortune for sterling....>

CABLE: ### -POV- Reversal of fortune for sterling this week as last

week's/month's interest rate hike speculation gets pushed aside for market to

concentrate on other issues. Conservative Party Conference this week usually an

opportunity to 'rally the troops' but seems to have highlighted further the

Brexit splits in the governing party, with Cabinet members seemingly jostling

for position on speculated PM May's demise. This outlook has been seen weighing

on sterling, with release of disappointing Manufacturing and Construction PMI

data adding to the negative outlook(Construction PMI data has moved into

contraction). Services PMI, released Wednesday now becomes more important than

usual to see if it completes the disappointing set. If it comes in at the

forecast level(53.2 vs last 53.2), or above, it should act to counter the

current negative tone. The removal of the Brexit referendum emergency 25bp cut

now seen in the rate for the November meeting. Support at $1.3216 (50%

$1.2774-1.3659) key, a break to expose $1.3157-1.3112. Resistance $1.3300/05,

then $1.3343/50 barriers to recovery hopes.