Sterling has strengthened with yesterday's....>

CABLE: Sterling has strengthened with yesterday's policy measures taken by UK

authorities taking focus. Cable trades +64 pips at $1.2119, with a source citing

short-covering at one point.

- On Tuesday, UK Cll'r Sunak unveiled steps including GBP330bn of business loan

guarantees, an equivalent of 15% of UK GDP. In addition, Sunak pledged GBP20bn

in tax cuts and grants for businesses. The Treasury's response was coordinated

with the BoE, which said it will buy non-financial firms' commercial paper due

in up to one year. PM Johnson commented that there is a need to "act like any

wartime gov't and do whatever it takes to support our economy." Sunak describes

the package as a "first step" and suggested there's more support coming up.

- Cable is on course for snapping its six-day losing streak. Bulls would like to

see yesterday's peak at $1.2273 give way, before targeting the $1.2425, the high

of Mar 16. Bears keep an eye on the psychological $1.2000 barrier, following

yesterday's failure to clear the level. A break here would open the lower 3.0%

Bollinger band at $1.1827.