Release of disappointing UK flash PMI's.......>

CABLE: Release of disappointing UK flash PMI's Monday dented what was looking

like a sterling recovery, having been sold back from election react highs above

$1.35 on profit take sales. Rate was squeezed away from its traded high of

$1.3422, though met support which kept it buoyed above $1.3320 through the NY

session. UK press report suggesting PM Johnson could legally prohibit transition

phase extension, basically placing a hard Brexit back on the table as the new

government negotiates a trade deal, knocked sterling lower into a very thin

opening Asian market, cable dropped to $1.3236 then managed to perform an

unconvincing recovery to $1.3301 where momentum faded. Rate dropped back to

$1.3250 but was again meeting willing buyers into the dip. Market will remain

wary as PM Johnson comments could be seen Trumpesque as negotiations with the EU

get under way.

- UK Employment data due at 0930GMT.

- Cable support $1.3250, $1.3236/28, $1.3220. Resistance $1.3300, $1.3350.  

- BOE Carney speaks at Coeure's farewell dinner at 1915GMT. Carney replacement

to be announced today?