Sterling advanced further Tuesday as..........>

CABLE: Sterling advanced further Tuesday as markets continued to react to

positive Brexit deal comments. Cable extended recent gains to $1.2800 (into the

1600BST fix) before it eased to $1.2718. Buyers moved into the dip to edge it

back to $1.2792, closing the day around $1.2780. Rate touched a high of $1.2790

in opening Asian trade before easing to $1.2739 in reaction to general risk off

trade (China has threatened to retaliate to a US HK bill). Initial recovery was

slow, the rate edging to $1.2761 before early Europe pushed it up to $1.2784

(rate holding firm at writing). Markets watching for Brexit headlines. 

- Brexit to overshadow today's release of UK inflation data, due at 0830GMT.

Market median 0.2%mm, 1.8%yy. Core 1.7%yy.

- BOE Carney takes part in a panel discussion at an IMF event at 1300GMT, at

2200GMT at Harvard Kennedy School.

- Cable support $1.2720, $1.2700. Resistance $1.2800, $1.2820/30, $1.2350.