Sterling quickly reversed off early Europe....>

CABLE: Sterling quickly reversed off early Europe lows Monday, cable touching an

extended YTD low of $1.2872(as EUR/GBP probed through its resistance of

Gbp0.8500 to Gbp0.8504) before correction. One trader reminds that it is best to

be sceptical of early Europe Monday moves, while another suggests that Europe

moves from 0700GMT to 0800-0830GMT often reverse. Cable rallied to $1.2946 in

early NY, as EUR/GBP broke back below its key technical 10-dma(Gbp0.8463) before

momentum faded. Cable dropped back to $1.2907 through the 1600GMT fix before it

settled around $1.2910 into the close. Move lower was seen on general USD

strength, led by EUR weakness. Cable consolidated between $1.2910-22 through

Asia before early Europe pressed rate back below $1.2900 to $1.2897. Another

early Europe feint?. EUR/USD is seen meeting decent support which is keeping

this rate buoyed above $1.0900 which sees the cross push up to Gbp0.8457,

holding below its 10-dma, currently at Gbp0.8462. 

- UK Q4 GDP seen pre election, markets await next month's post election GDP

data. UK IP/MFG, Trade and Construction output all due at 0930GMT. BOE

Carney(dovish) and Haskel(dovish) speak at 1535GMT and 1700GMT respectively.