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Sterling has mainly consolidated Tuesday's....>

CABLE
MNI (London)
CABLE: Sterling has mainly consolidated Tuesday's gains though was seen slightly
drifting off through Asia and into Europe. Cable rallied sharply yesterday in
reaction to a Sun story stating that UK negotiators were "pleasantly surprised"
at how well talks with the EU were going. This played out amidst broader USD
weakness evident in the NY session. Cable traded to an eventual high of $1.3073
before it settled around $1.3070 into the close. Early Asia nudged rate to
$1.3076 but struggled to build on this move before it slowly eased back to
$1.3047 into early Europe. Support seen between $1.3030/20 ahead of $1.3000.
Resistance remains toward $1.3080, a break to expose $1.3100. 
- Brexit remains to the forefront driving sterling direction. On this point, UK
C'llr Hammond said post the Sun story that a no-deal Brexit would be a "mutual
calamity." He added that the EU "will not consider replacing the backstop with
an alternative now" and that the 'Malthouse' initiative is a "valuable effort to
allay backstop concerns in the future."
- PM May is due to meet EU Commission's Juncker later today. Market will be on
headline watch.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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