Sterling continued to trade with a softer.....>

CABLE: Sterling continued to trade with a softer feel through European morning

trade Thursday, cable touched a fresh YTD low of $1.2849 before it recovered to

$1.2889 through NY ahead of its $1.2884 close. Release of stronger than forecast

UK inflation data(Wed) and Retail Sales(Thu) did little to counter the pressure

from risk related flows, JPY taking the main brunt of this on COVID-19

contagion. Focus today turns to the release of flash PMI data at 0930GMT. Market

interested to see if the post election confidence boost has been maintained

(market medians Mfg 49.7 vs 50.0 last; Svcs 53.4 vs 53.9 last). UK Borrowing

data also released at same time. BOE Tenreyro(dovish) speaks at 1830GMT in NY.

- Support $1.2850/49, $1.2835/25, $1.2700. Resistance $1.2900, $1.2925/30,

$1.2950. 

- COVID-19 developments and its effect on risk remain a key driver.