Sterling took full advantage of USD...........>

CABLE: Sterling took full advantage of USD weakness (funding pressures relieved,

positioning ahead of today's FOMC) Tuesday as cable rallied off an early Europe

low of $1.2393 to an eventual high of $1.2527 then settled around $1.2500 into

the close. Sterling also drew support on press suggestion that BOE Carney could

be asked to extend his tenure as BOE Governor past Jan31 if Brexit delayed

further. The three days of hearings by the Supreme Court concerning the legality

of PM Johnson to prorogue parliament began Tuesday but so far seen having little

market effect. An early post of $1.2515 into Asia before rate drifted lower, in

what one Asian trader described as light participation trade, to $1.2481 into

Europe, though move has attracted some demand into the new session. Resistance

suggested in the area between $1.2520/30. Support $1.2475/70, $1.2450 ahead of

$1.2426. 

- Early focus on UK CPI, ahead of Thursday's BOE MPC rate announcement. More

attention on the FOMC announcement later in the day, most expect a 25bp cut but

main focus on 2020 rate path.