Sterling remained bruised through Tuesday's...>

CABLE: Sterling remained bruised through Tuesday's NY session, following reports

of a telephone conversation between PM Johnson and Germany Chancellor Merkel

which widened the gap for a Brexit deal. Ireland Vradkar was also noted saying

last night that he thinks its going to be very difficult to secure an agreement

by next week. Cable was pressed to make a show below $1.2200, touched $1.2195 in

NY but managed to recover to $1.2226 ahead of the close. Rate continued to meet

resistance at $1.2226 in Asia before rate drifted off to place pressure again on

the $1.2200 area, touched $1.2198, currently around $1.2209. Although the

outlook for a Brexit agreement by Oct31 looks bleak market continues to hold a

belief that there will be an extension and/or that a deal can be hammered out.

Some suggest that Vradkar's comment that it will be difficult to get an

agreement, rather than suggesting it would be impossible, along with suggested

talks between him and Johnson this week, seen providing some buoyancy, albeit

weak. 

- Support seen between $1.2200-1.2195($1.2197 61.8% 1.1959-1.2582), $1.2180.

Resistance $1.2226, $1.2250-60.