Sterling is on the defensive, with Brexit.....>

CABLE: Sterling is on the defensive, with Brexit news flow still taking the

centre stage. Cable last sits at $1.2759, 28 pips lower on the day. This comes

after the pair added nearly 180 pips Tues on Brexit talks optimism.

- Intense UK-EU negotiations are underway and are set to continue through the

night with the aim of finalising the draft of a Brexit deal by the time EU

leaders meet for their summit on Thursday. The Guardian reported that the

document could be shown to EU diplomats as early as Wednesday morning.

- EU stance aside, questions remain re: potential for the deal getting passed by

the Commons. The FT reported that the DUP asked PM Johnson for "billions not

millions" in cash payment for Northern Ireland to back the PM's Brexit plan.

- Bulls look to take out the psychological barrier at $1.2800, which capped

gains yesterday. Downside focus falls on the $1.2714 200-DMA.

- Brexit news will no doubt retain spotlight, with the aforementioned EU Council

meeting & an emergency sitting in parliament on Saturday.

- UK inflation data hits later today, retail sales hit on Thursday. BoE's Carney

and Cunliffe speak on Friday, while the Governor is also set to speak today.