Reaction to the UK Govt's failure to get......>

CABLE: Reaction to the UK Govt's failure to get the timetable for the

implementation of the WAB passed prompted pressure on the pound which took cable

to a low Wednesday of $1.2841. However, traders moved their view on to details

of the expected Brexit extension, as well as noises suggesting the UK Govt was

edging toward calling for a general election. Labour have said they would

support this, if an extension is granted by the EU, although reports this

morning suggest some Labour MP's would still vote against. Polls suggest the

Conservatives would win with a working majority (without the need of the DUP's

support), which if correct would make passage of the WAB easier. This outlook

saw demand emerge for the pound, edged to $1.2922 through the NY session before

it closed around $1.2913. A generally subdued Asian session saw cable

consolidate between $1.2908/28, early buys in Europe able to extend the topside

to $1.2929. Focus to remain on Brexit developments/general election. Sterling

remains a buy on dips.

- A light UK data calendar Thursday. Apart from Brexit focus on EZ PMI's and ECB

Draghi's last meeting.