Rate gained a lift to $1.2518 as markets......>

CABLE: Rate gained a lift to $1.2518 as markets reacted to the ECB announcement.

Initial EUR react losses took EUR/GBP down to Gbp0.8890 (1.0% 10-dma envelope

base Gbp0.8888 Thursday) which in turn provided the drive to the mentioned high,

but the sharp bounce back in the EUR (EUR/USD bounced sharply away from $1.1102)

saw the cross bounce to Gbp0.8960 which dropped cable back to $1.2437. Recovery

efforts were capped at $1.2460 before it closed around $1.2455. Early Asia again

met stiff resistance at the $1.2460 level, the rate settling between $1.2450/60

before it slowly drifted down to $1.2443 ahead of the European open. Strong

sterling sales emerged in opening European trade, dropped cable to an extended

low of $1.2426, meeting support here from the rising trend off July lows of

$1.2382(Jul17), as the cross was driven up to Gbp0.8968. Sterling moves away

from ECB rate speculation for direction to UK politics/Brexit, though FOMC next

week emerging as the next focal point. Month-end approaching with early models

suggesting USD sales, which could provide for cable demand according to Citi's

Asset based model. A light calendar for the UK Friday, main focus on US GDP.