Rate saw an extended low of $1.2119...........>

CABLE: Rate saw an extended low of $1.2119 Tuesday, as Brexit fall out continued

to press on sterling. However, rate did manage to recover through the day to

$1.2190 but struggled to bring any pressure to bear on reported resistance at

$1.2200. Rate drifted back to $1.2136 in NY (76.4% $1.2119-90) before it settled

around $1.2150 into the close. Trade through Asia was contained within a

relatively tight range of $1.2146-69, trading around $1.2160 in early Europe.

- A light UK data calendar with attention on US FOMC rate decision, after Europe

close. Most expect a 25bp cut with more focus on the press conference for future

rate path.

- Month-end and prelim model calls from Citi suggested mild USD sales to be

seen(awaiting final model call). Chance we could see month-end demand for

EUR/GBP which could counter this through the day. Brexit headlines remain key

for directional impetus.