Reports Tuesday suggested little progress.....>

CABLE: Reports Tuesday suggested little progress in Brexit negotiations, as UK

Cox and Barclay met EU Barnier, along with comments from Labour's John McDonnell

that he expected few of his party members to support PM May's Bill next week,

acted to press sterling lower, as it extended its corrective pullback from last

week's Brexit euphoria related high of $1.3350. Cable broke back under its key

50-wma at $1.3135 to $1.3098. Some retraction from McDonnell and comments from

BOE Carney, suggesting market could be under pricing BOE rate path, helped cable

to recover, initially spiking to $1.3160 through the 1600GMT fix, then on to

$1.3180 ahead of the close. Rate came under fresh pressure in Asia as Australian

GDP posted a miss which weighed heavily on the AUD. This move influenced cable

back to $1.3124 before it settled around $1.3135 into Europe. USD sales in early

Europe has allowed rate to track EUR/USD's move back above $1.1300, the rate

currently trading around $1.3140.

- Cable support $1.3124, $1.3098. Resistance $1.3180, $1.3200.

- UK data calendar light. Attention on BOE speakers, Cunliffe(dove) 1215GMT,

Saunders(hawk) at 1730GMT, Haldane(hawk) 1800GMT.