Recent recovery rally extended in opening.....>

CABLE: Recent recovery rally extended in opening Europe trade to $1.2690 before

position adjustments eased it back to $1.2619 into the NY open. Early NY took

rate back to $1.2680 ahead of NFP release, the data coming in much better than

expected which initially prompted USD demand which took rate back to $1.2639.

However, as seen in recent positive US releases it provided a boost to the

equity markets, in turn allowing for renewed risk appetite, and pressure on safe

haven currencies, which helped to drive cable to a high of $1.2731. Sterling's

move was seen general with tech analysts suggesting that this afternoon's rally

was a catch up on Eur's ECB react rally, adding that in the bigger picture see

this recovery as a correction of the move down from 2018 highs which could open

a potential move toward $1.32/1.33. EUR/GBP has eased back below its key 10-dma

which should help to keep sterling buoyed. Move up also seems to be ignoring

negative comments from EU Barnier on UK/EU negotiations, BOE warning banks to

prepare for a disorderly Brexit, whilst leaving the door open to negative rates

if needed to aid post COVID-19 recovery efforts. Cable has drifted back to

$1.2667 into the NY afternoon as positions adjusted ahead of the weekend.