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Sank through its Jul17 low of $1.2382.........>

MNI (London)
CABLE: Sank through its Jul17 low of $1.2382 Friday, the release of better than
forecast US GDP providing the nudge, with recovery efforts through the day
proving to be difficult. Weekend press highlighted that the UK government were
gearing themselves up in preparation for a no-deal Brexit, Michael Gove, the
minister responsible for no-deal Brexit preparations, commented that the
government was working on the assumption that Brussels would not strike a new
agreement. This news placed sterling under fresh pressure into Asia, though
fairly mild, the rate pressed to an extended low of $1.2362 with tone remaining
heavy into Europe. Interesting to see if this move to play no-Brexit hard ball
with Europe will work, or maybe Europe will try to call Johnson's bluff. CBI has
suggested that neither side is properly prepared for no-deal. Conservative poll
standing gained a boost at the weekend which may open the chance for a snap
- Brexit headlines again provide main directional drive. Focus also on Wednesday
FOMC rate decision ahead of BOE MPC Thursday(market watching for dovish tones).
- Cable support $1.2362, stronger into $1.2350. Resistance ahead of $1.2400. 
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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