Sterling retains a buoyant tone into early....>

CABLE: Sterling retains a buoyant tone into early European trade Wednesday, the

currency lifted Tuesday by further positive Brexit deal comment, which continued

in Asia. Cable rallied to a high of $1.3150 in NY, where it met decent

resistance. Level gave way in Asia as markets reacted to an news item on ITV

which suggested progress made on the Irish border issue, followed by a report in

The Times that PM May to force cabinet into fresh Brexit compromise next week

and that 30 rebel Labour MP's could support the Govt breaking ranks with Labour

leader Corbyn. Cable extended rally to $1.3162, gaining a boost as Europe began

to $1.3173. Rate currently trades around $1.3171 at writing. Sterling strength

has also weighed on EUR/GBP, the cross easing to Gbp0.8740 and back outside of

its relevant 1.0% 10-dma envelope(Gbp0.8746 currently). Next cable resistance

seen at $1.3179(Sep27 high) ahead of $1.3190/1.3200. Support $1.3125. UK data in

focus, GDP (median 0.1%mm, 3m/3m 0.6%), Trade, IP-Mfg and Construction Output

all due for release at 0830GMT. Potential for Brexit headlines overshadows.