Release of stronger than forecast UK Retail...>

CABLE: Release of stronger than forecast UK Retail Sales Thursday allowed cable

to extend its recovery off Wednesday lows of $1.3306 to $1.3422 in its initial

react. However, the positive tone for sterling quickly faded and rate eased back

to $1.3365 before it settled around $1.3380 into the close. Rate posted an early

high of $1.3388 before reversal back to $1.3362 on general USD demand generated

by Goto-bi day USD/JPY buys at the Tokyo fix. Recovery effort was capped at

$1.3374 before it eased off to $1.3365 into early Europe. UK second reading of

Q1 GDP due at 0830GMT provides main morning focus, consensus expecting no upside

revision to the initial reading of 0.1%qq, 1.2%yy. Any downside revision would

put any thought of a rate hike this year on the back burner, improvement though

could provide the bigger surprise reaction. Cable support $1.3360/50, a move

below to expose the recent low of $1.3306(May23). Resistance $1.3400 ahead of

$1.3415/22. Bank holidays in UK and US Monday could prompt some adjusting of

risk positions ahead of the weekend.