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Recovery off Thursday's low of $1.3712(seen...>

CABLE
MNI (London)
CABLE: Recovery off Thursday's low of $1.3712(seen on PM May's rejection of the
EU Draft Brexit proposals) extended to $1.3785 in NY following the broad Usd
sell off prompted by US Trump tariff proposals on steel and aluminum imports
(suggested to spark a trade war). The move up however trailed Eur/Usd's stronger
reaction which allowed Eur/Gbp to edge backa bove Gbp0.8900, touched Gbp0.8910
in Asia. Cable did manage to extend its recovery to $1.3793 in Asia but has
settled back around $1.3780 in early Europe. Brexit remains the key driver for
sterling with focus set firmly on today's speech by PM May (moved to London from
Newcastle due to weather) where she is expected to outline the government's
vision of future relationship with Europe, with particular interest to be shown
on Ireland/N.Ireland border proposals. BOE Carney speaks at the Scottish
Economics Conference 1000GMT, details of speech content not given. Construction
PMI at 0930GMT, market median 50.5 vs 50.2 last. Weekend approaching and we may
see some paring of sterling shorts but underlying tone remains decidedly bearish
toward the pound.   
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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