Sterling continued on a Brexit back foot......>

CABLE: Sterling continued on a Brexit back foot Tuesday with cable pressed to an

eventual low of $1.2725 before it found some support. General USD strength was

also a noted factor in cable losses. However, rate did manage to recover to

$1.2749 in late NY. Rate drifted off to $1.2733 in early Asia before it edged

back to $1.2745 where it settled for a time. Fresh demand emerged later in the

session with rate extending its recovery to $1.2761 into early Europe. However,

move has run into sellers as rate drops back to $1.2744. Volatility expected to

remain with market seen jittery on Brexit headline moves. UK Treasury was due to

publish its forecasts on the impact of Brexit at 0730GMT but this has been put

back, and could be published with the Bank's own Brexit assessment on the

economy due at 1615GMT, with BOE Carney due to speak at 1645GMT. PM May

continues to try and sell her Brexit plan, opinion poll overnight has suggested

that acceptance of the deal garnering support in the general public. Cable

support $1.2733/25 ahead of $1.2710/00, with some highlighting $1.2690, a break

to place further pressure on the pound. Resistance $1.2760/65, $1.2800.