Sterling lost further ground Tuesday,.........>

CABLE: Sterling lost further ground Tuesday, allowed cable to take out reported

option barrier interest at $1.2400. Rate traded to $1.2397 before it bounced

back, the corrective rally faded at $1.2426 before it settled between $1.2400-10

into the close. Cable held around $1.2410 in early Asia before it reacted

positively to a Times report suggesting Boris Johnson would look to call an

early General Election (post Brexit Oct 31) whilst Jeremy Corbyn remains Labour

leader. Reports also suggest Johnson could look to schedule a Queen's speech to

mark the start of a new parliamentary session in early November, which would

allow the suspension of Parliament for one or two weeks in advance. Cable

touched a high of $1.2420, but momentum quickly faded again. Key resistance now

seen at the broken support level of $1.2440. Support seen at $1.2400/1.2397, a

break here to expose minor support at $1.2380 ahead of stronger interest into

$1.2350 (1.2352/51 1.618% swing of 1.2440-1.2582/April 2017 low). 

- UK Inflation data in focus at 0830GMT. No major surprises expected in this

release but sterling remains vulnerable to any negative data which could support

recent dovish comments from the BOE. UK Retail Sales Thursday.