Recovery off last Thursday's low of $1.2789...>

CABLE: Recovery off last Thursday's low of $1.2789 extended on to $1.2877

Monday, as the EU granted a 'flextension' out to Jan31 2020, before rate settled

around $1.2860 into the close. As expected the UK parliament opposed PM

Johnson's attempt to call a Dec12 election, the Conservatives failed to get the

2/3 majority required. Focus now switches to the PM introducing the proposal as

a Bill, which should gain DLP and SNP support(if the PM drops trying to get his

WAB passed until after an election) and needs only a simple majority to pass.

Date of an election then in contention, PM wants Dec12, SNP and DLP Dec9.

Positive noises on the US-China trade talks provided added risk appetite into

Asia, early demand for USD/JPY prompted USD buys across the board, and with

reported GBP/JPY sales at the Tokyo fix and dropped cable to $1.2845, with

further sales post CNY fix extended move to $1.2835. Buyers emerged into the

dip, which along with USD buy fatigue, allowed cable to recover, trading around

$1.2860 into Europe.

- UK Borrowing data at 0930GMT but Brexit developments to overshadow. 

- Cable support $1.2835, $1.2810/00. Resistance $1.2870/80.