Recovery off Friday's low of $1.2530..........>

CABLE: Recovery off Friday's low of $1.2530 touched a high of $1.2647 Monday

ahead of the NY open. Rate eased off to $1.2593 in early NY, recovered to

$1.2634 before it settled between $1.2610/20 into the close. Brexit remains to

the fore in sterling direction. PM May announced Monday that a vote on her

Brexit deal would follow a debate beginning Jan7. This move to put the vote into

early 2019 has prompted the opposition Labour Party to request a vote of

no-confidence in the PM, but holds back on requesting a no-confidence vote in

the Govt, which carries a lot more weight. The Times carries a report this

morning that PM May will ask her Cabinet to vote on three options for how the UK

will prepare for Brexit. Cabinet likely to vote for preparations for a no-deal

Brexit. Cable edged up from an early low of $1.2610to a high of $1.2634, helped

by demand through the Tokyo fix, as well as general mild pressure on the USD

ahead of Wednesday's FOMC announcement. Resistance seen into $1.2650, stronger

at and above $1.2680. Support $1.2610/00 ahead of $1.2593.

- Light UK data calendar today. Apart from Brexit focus on UK Inflation data,

FOMC Wednesday,  UK Retail Sales ahead of BOE Thursday.