Saw a recovery to $1.3153 Wed. Cable..........>

CABLE: Saw a recovery to $1.3153 Wed. Cable consolidated the move through

Thursday trade, supported around $1.3100. Wednesday's jobs data provided some

easing in pricing for a BOE rate cut at next week's announcement (Jan30) with

attention switching to today's release of flash PMI's at 0930GMT to gauge that

outlook further. Cable drifted from Thursday's high of $1.3151 to a post fix low

of $1.3097, the move in part driven by risk related trade as JPY was seen

drawing in flows due to reports of the spread of the China coronavirus. However,

some of this risk move was soothed as WHO stated it was 'too early' to declare

the virus a global health emergency. Cable recovered to $1.3128 into the close.

Rate touched $1.3112 in Asia before it lifted to $1.3139 into Europe. Traders

note Chancellor Javid comments to business leaders that UK will only diverge

from European trade rules when it's in the interests of business(drawing back

from last weekend's comments). Post election flash PMI's (85% of respondents)

expected positive, market median Mfg 48.8, Svcs 51.1. 

- Cable support $1.3100/1.3095, $1.3085/80. Resistance $1.3150/55, $1.3170/80,

$1.3200/10.