Risk appetite emerged Tuesday and reversed....>

CABLE: Risk appetite emerged Tuesday and reversed the recent USD rally with

cable recovering off a low of $1.2833 to an eventual session high of $1.2909

before momentum faded. Rate drifted back to $1.2890 into the close. Early Asia

picked up the recovery baton but met early resistance at $1.2900 ahead of the

Tokyo open. Headline suggesting China Xi-Jinping to meet US delegation Friday,

along with RBNZ not as dovish as forecast which boosted NZD, provided fresh

risk-on interest and lifted cable on to $1.2923 into Europe. Resistance seen at

$1.2935/40 ahead of $1.2950. Support now seen at $1.2900 ahead of $1.2880/70.

- Press reported Tue that PM May's chief negotiator was overheard suggesting

Brussels will probably grant UK an extension of Art. 50(ITV). He also noted that

parliament is faced with a choice of May's deal or a long delay re: Brexit. The

Sun reported that a cross-party group of MPs is preparing a bill that would

force the gov't to postpone Brexit should PM May fail to pass her deal within 30

days. BoE Gov Carney spoke Tue, stressed that the U.K.'s slower than exp.

economic growth underscores the need for more Brexit certainty.

- UK CPI 0930GMT (median -0.7%mm, 1.9%yy; core 1.9%yy).