Pressed to an extended low of $1.2955.........>

CABLE: Pressed to an extended low of $1.2955 Tuesday as sterling continued to

feel the effects of recent dovish comments from BOE MPC members. Pressure on

sterling also saw EUR/GBP push up to Gbp0.8597 but the cross reversed away from

the topside of its 1.0% 10-dma envelope (Gbp0.8600) which aided the pound's

recovery. More talk around that expects the BOE to keep rates unchanged at the

January meeting, BOE Governor Carney's last, though suggestions are that the

vote split could move to 6-3 from current 7-2. On this note we have one of the

current dissenters speaking this morning at 0840GMT, BOE MPC Saunders(very

dovish) shares the MPC's view on the economy with business leaders. At 0930GMT

attention to switch to the release of UK inflation data, market median CPI

0.2%mm, 1.5%yy; core 1.7%yy. Despite the dovish near term outlook from the BOE

market outlook for sterling retains an underlying bullish feel. Cable edged away

from its lows to a high of $1.3033 before settling around $1.3020 into the

close. Rate touched a low in early Tokyo of $1.3014 before it resumed its

recovery, pushed on to $1.3037 into the European open. Rate was knocked back to

$1.3025 but seen picking up fresh demand at writing.