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Release of stronger than forecast UK CPI......>

CABLE
MNI (London)
CABLE: Release of stronger than forecast UK CPI Wednesday saw an initial
positive sterling react which took cable up to $1.3023 only for it to reverse as
a change in risk outlook took over the drive. Optimism for the containment of
COVID-19 spread in China provided a boost for risk appetite, USD/JPY provided
the lead with general USD demand taking cable to a low of $1.2908 through the NY
session. Rate recovered to $1.2930 before closing around $1.2921. Reports of
virus spread in S.Korea, along with two reported deaths from the Diamond
Princess cruise liner, countered Wednesday's risk move and allowed cable to
nudge up to $1.2929 before momentum faltered. USD/JPY, which had been sold back
to Y111.13, off Wednesday high of Y111.59, rallied back into Europe to Y111.64
which placed further pressure on cable, via USD demand, taking rate to $1.2885.
- Support $1.2872 Feb10 YTD low, $1.2850, $1.2835/30. Resistance $1.2930,
$1.2950/55, $1.2970/80. 
- UK Retail Sales at 0930GMT, market median ex-petrol 0.8%mm, 0.5% yy; Incl.
petrol 0.7%mm, 0.6%yy. CBI Trends due at 1100GMT.   
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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