Recovery off the post election pullback low...>

CABLE: Recovery off the post election pullback low of $1.2905 extended to

$1.3284 Tuesday on month-, year-end flow with month-end models correctly

predicting USD sales at the fixes. Rate touched this high on post fix flow,

before momentum waned and it drifted off to $1.3232, but managed to close the

year at $1.3262. Rate marked a high of $1.3266 in early 2020 trade but was then

pressed down to $1.3203 as traders adjusted positions into the new year

wondering if the pound can hold Tuesday's gains without the month-end demand.

However, rate remained above $1.3200, edging to $1.3224 in early Europe. 

- Support remains into $1.3200/1.3190, this area also holding option expiry

interest at today's NY cut, Gbp772mln of which Gbp667mln are Gbp calls. Break

here to open a deeper pullback to $1.3173(50-mma) and $1.3150.

- EUR/GBP will be watched for any month end demand which could put a dampener on

current sterling gains.  

- UK final Mfg PMI due at 0930GMT(flash 47.4), with some expectation we could

see a slight improvement, median forecast 47.6. 

- US Weekly Jobless Claims and Mfg PMI provide afternoon interest.