Recovered off its Wednesday low of $1.2309,...>

CABLE: Recovered off its Wednesday low of $1.2309, the move down seen on demand

in EUR/GBP which had lifted the cross briefly above its key 10-dma in month-end

demand flow, to $1.2472. The recovery was aided by the FOMC keeping rates on

hold, including the IOER, as well as saying that the Fed will do whatever it

takes to counter economic virus effects. Early Tokyo USD demand, led by USD/JPY

buys into the Tokyo fix, saw cable dip to $1.2429 (off an Asia opening high of

$1.2484 seen on US name buys) but managed to recover to $1.2482 into Europe.

Month-end and prelim models have suggested USD sales to be seen into today's

fixes, GBP suggested a beneficiary of this flow. Despite the sojourn above its

technically key 10-dma Wednesday the cross closed back below and currently

holds. Whilst below the 10-dma seen adding some buoyancy to sterling. A break

above to again dent this outlook (month-end could see demand emerge for the

cross), with today's ECB also a likely influencer. 

- Cable support $1.2429, $1.2410/00, $1.2376(61.8% $1.2309-1.2484). Resistance

$1.2484/86, $1.2518.