Rate saw an extended low of $1.2811...........>

CABLE: Rate saw an extended low of $1.2811 Tuesday, as markets reacted to the

release of strong US ISM data. Recovery was given a boost through the London

fix, with comments from an EU lawmaker on the Irish border, taking the

correction on to $1.2871. Rate settled around $1.2855 into the close. Early Asia

saw consolidation between $1.2850-60 before it gained a lift to $1.2870. Slow

drift lower into Europe with the new session squeezing rate back to $1.2850.

Damning comments on Govt Brexit negotiations by ex-BOE Governor Lord King were

noted but brushed aside. Brexit comment remains a key driver in sterling markets

as negotiations and political sniping continue. UK Services PMI data due out at

0830GMT, the key PMI release of the set. Market median looking for an

improvement to 53.9, vs 53.4 last (MNI median 54.0) which would counter the

softer readings from Mfg and Construction PMI data released already this week.

Cable support seen into $1.2844(NY hourly low) ahead of stronger interest

between $1.2811-00. Resistance remains around $1.2870, a break to expose

stronger interest between $1.2890/1.2900.