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Recovery off Friday's low of $1.2735..........>

CABLE
MNI (London)
CABLE: Recovery off Friday's low of $1.2735 extended through the NY high of
$1.2780 in early Asia as markets reacted positively to the weekend US/Chine
trade tariff truce. Cable rallied to $1.2795 in early thin trade, only to
pullback to $1.2734 as Tokyo trading got under way, and in possible reaction to
a Telegraph headline that Brexit architect Oliver Robbins has voiced concerns
over the back stop. Early demand for USD/JPY quickly faded, the corrective
pullback allowed cable to recover to an eventual high of $1.2785 ahead of the
European open. Rate currently consolidates between $1.2775/85. Brexit remains
the key driver of sterling direction with the Attorney General's legal advice on
the 'backstop' in PM May's Brexit deal becoming contentious. PM May continues
her drive to garner support for her deal ahead of the Dec11 vote. UK Mfg PMI due
at 0930GMT, median forecast 51.7 vs last 51.1. Cable support seen at $1.2735/30,
Asian traders suggesting some short covering seen in this area. Resistance
$1.2795/1.2810. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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