Risk driven rally Monday drove cable to a.....>

CABLE: Risk driven rally Monday drove cable to a high of $1.2227 before rate

settled just below $1.2200 through to the close. Rate dipped to $1.2184 in Asia

then edged back above $1.2200 ahead of UK Employment data. Claimant count was

above expectations but overall data was seen not as bad as feared and prompted

another round of sterling demand which took rate on to $1.2268. Corrective

pullback met support at Monday's high before fresh demand began to emerge. This

buy interest gained pace in NY on the back of GBP/JPY demand, as US reacted to

the earlier announcement of an unscheduled BOJ meeting called for Friday. Rate

edged on to $1.2268 where it again met decent resistance in the $1.2265/70 area.

However, as London left for home fresh buys emerged to push rate above and on to

$1.2282 as shorts were squeezed. Resistance seen into $1.2300 ahead of

$1.2320/30. Support $1.2230/20 ahead of $1.2184/74. 

- Wednesday brings UK CPI at 0700BST. Market median 0.1% vs 0.0% prior, which

would put the YoY figure at 0.9% vs prior 1.5%.

- BOE Broadbent, Bailey and Cunliffe at TSC 1430BST talking about economic

effect of COVID-19.