Sterling outperformed Thursday, in the wake...>

CABLE: Sterling outperformed Thursday, in the wake of the BoE's MonPol decision

& inflation report. The Bank voted unanimously to stand pat on its MonPol

settings, as expected, revising its near-term GDP and inflation forecasts lower

(although kept longer-term forecasts near-unchanged), before warning that rates

could rise even if the UK goes through a disruptive no deal Brexit, ultimately

lending some support to GBP after the initial hit on the economic forecast

revisions. Sharp bounce back from initial react lows of $1.2854 saw rate touch a

high of $1.2996 before it drifted off through the NY afternoon to $1.2947 into

the close. This pullback was seen in part driven by a lack of optimism on the

Brexit front. UK PM May went to Brussels and some reports suggest she asked EU

officials to implement a time limit on the Irish backstop, with the EU

consistently opposing a renegotiation of the current deal. Juncker and May will

meet again later this month. PM May visits Ireland today. Telegraph headline

Wednesday was 'PM May in Irish Border Dash' and keeps flashing up in my mind.

Cable support $1.2942(Asia low, 38.2% $1.2854-1.2996), break to expose $1.2925

ahead of $1.2910/00. Resistance remains into $1.3000.