Sterling remains a major beneficiary of the...>

CABLE: Sterling remains a major beneficiary of the better risk outlook, as

equity markets continue to push higher on hopes for an improved economic outlook

as COVID-19 global lock downs are eased. Cable touched an extended high in Asia

of $1.2611, with corrective pullbacks during the day holding above $1.2550.

Further moves above $1.26 found difficulty in retesting that earlier high until

after the 1600BST fix when rate edged on to $1.2615. However, momentum quickly

faded and rate eased back to $1.2582. Risk remains the dominating driving force

for direction, the current positive outlook disregarding potential sterling

fundamental negatives, current UK-EU negotiations for the post Brexit

relationship, with the BOE reportedly warning banks to prepare for a disorderly

exit at the end of the year. Bank as well keeping the door open for negative

rates. UK employment levels also likely to take a hit as country comes out of

the COVID-19 lock down. However, whilst risk remains sterling's friend above

$1.2615 next resistance seen into $1.2640/50 ahead of $1.2670/80. Support

$1.2580, $1.2550. 

- Light UK calendar Thursday. Focus on ECB policy meeting.