Recovery off Wednesday's pullback low of......>

CABLE: Recovery off Wednesday's pullback low of $1.2658 (from Tuesday's high of

$1.2768) managed to recover to $1.2744 ahead of last night's close. Asia saw

rate drift off to $1.2724 then recovered to $1.2754 ahead of 0800BST. Suggestion

that market positioned for momentum funds to come in at this time but failure to

show prompted a quick long covering that pressed cable back to $1.2699. Recovery

to $1.2734 ahead of the NY open before sellers emerged into the US session which

too rate down to $1.2673. Move down given added weight by reported comments from

Brexit negotiators Frost and Barnier with no break through seen at this

meeting(MNI View: If LPF and fisheries are the only sticking points, should

leaders get involved in negotiations in September they could provide the impetus

needed to get a deal of sorts. Deal will be much more difficult if there are

multiple issues to address at the same time). Cable bounced with EUR/USD,

momentum fund demand again getting the blame, cable touched $1.2754, dipped

through the fix to $1.2732 then rallied to $1.2760. Rate has since eased to

$1.2733 as markets quieten into the NY afternoon. Friday brings UK flash PMI's,

market looking for a strong rebound in key Svcs data to 51.0 from 47.1 last.