Sterling gained some benefit from release.....>

CABLE: Sterling gained some benefit from release Wednesday of stronger than

forecast Inflation data. Cable pushed up to a high of $1.2101 into NY before it

again met headwind resistance above this figure. Rate made a sharpish reversal

in the US session as markets reacted to the US2y10y inversion, seen as a

potential recessionary signal. Cable found support ahead of $1.2050(low $1.2051)

before it closed around $1.2060. Consolidation in Asia saw rate confined to a

relatively tight range of $1.2051-64 but early Europe demand takes it on to a

$1.2070 high. Move seen driven by general demand for JPY pairs. 

- UK Retail Sales at 0830GMT provides the main domestic data interest. Median

-0.2%mm inc auto and ex-auto.

- US Retail Sales, Weekly Jobless Claims, Phila Fed and Empire State at 1230GMT.

Cap.Ut. and IP at 1315GMT. 

- Support $1.2045/40, $1.2015/00. Resistance $1.2100/10.