Recovery off Monday's low of $1.2455..........>

CABLE: Recovery off Monday's low of $1.2455 extended through Monday's NY session

as equities picked up demand, aided by US Empire State Mfg data, with late

announcement that the Fed will begin to buy individual corporate bonds boosting

the risk outlook which edged cable back above $1.26 (high $1.2607) into the

close. Early Asia took over the risk on baton which took rate though initial

resistance at $1.2650, faltering ahead of technical resistance at $1.2676(61.8%

1.2813-1.2455) before it moved to $1.2688 into Europe. Market has recent

experience that a positive risk outlook benefits sterling but UK Employment

Report looms large at 0700BST. Outlook is for a sharp increase in the official

unemployment rate, median 4.7% up from 3.9% last. Analysts already looking

forward to the damaging effects of the COVID-19 lock down on employment going

forward with a good portion of the work force currently furloughed, how many

will keep jobs when this government aid is wound down between July-October.

Brexit discussions described as 'decent' but nothing definite emerging. 

- Cable support $1.2660/50, $1.2620, $1.2600. Resistance $1.2688, $1.2700,

$1.2729(76.4% $1.2813-1.2455)