Sterling remains on its Brexit back foot,.....>

CABLE: Sterling remains on its Brexit back foot, cable consolidated Thursday

losses, which had seen it sold down to $1.2756 ahead of the NY open though did

manage to recover to $1.2797 post London fix before it settled around $1.2780

into the close. Rate was confined to a relatively tight $1.2772-93 range through

Asia. Brexit remains the key driver for sterling, especially with Parliamentary

factions playing brinkmanship with PM May on the threat of 'no-deal'. Month-end

and model predictions have switched to mild USD sales at today's fixes, one

suggesting the strongest signal is for cable buys. However, this could be

countered by $12.6bn of SOMA flows, which normally boost the USD. Cable support

seen around $1.2750 ahead of $1.2725/20, one tech traders highlights $1.2757-42

as key support, with $1.2580 still seen as the potential downside target.

EUR/GBP has remained buoyed above Gbp0.8900 in Asia, trade contained within

Gbp0.8903-17. Topside of the 1.0% 10-dma envelope seen at Gbp0.8968, not

resistance in itself but rate tends not to like to be outside this parameter for

too long.