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Release Friday of stronger than forecast US...>

CABLE
MNI (London)
CABLE: Release Friday of stronger than forecast US NFP prompted strong USD
demand across the board, which in turn pressed cable to a react  low of $1.2617
finding support at its earlier Asian base of $1.2616. A cautionary tone from
Fed's Powell countered the data driven USD strength and cable rallied to a fresh
intraday high of $1.2744 before it settled just above $1.2720 into the close.
Tokyo open saw market positioning for a strong Nikkei open, and in turn bought
USD/JPY. This demand pressed cable to $1.2714 but as USD/JPY reversed (despite
positive Nikkei) it allowed rate to edge to an eventual high of $1.2752 before
it settled between $1.2740/50 into Europe. Brexit debate begins in earnest again
this week(watchout for headlines), the meaningful vote set for Jan15. Moves over
the weekend by some MP's of all colour to prevent a hard Brexit noted. If any
concessions from the EU toward PM May's Brexit plan remain under wraps, if
indeed there are any. EUR/GBP consolidates back below Gbp0.9000, trades between
Gbp0.8950/60.
- Cable support $1.2700, $1.2685/80. Resistance $1.2770-80, $1.2800. 
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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