Sterling was squeezed to a low Thursday of....>

CABLE: Sterling was squeezed to a low Thursday of $1.2860, the move seen as a

reaction to EUR carry trade unwinds as EUR/GBP was driven up to the top of its

2.0% 10-dma envelope at Gbp0.8543, with possible month-end flow also adding to

the rally. Recovery efforts in cable were restricted to $1.2917, seen in early

NY, before pressure resumed to take it back to $1.2865, closing the day around

$1.2885. Early consolidation in Asia before rate was pressed down to $1.2870 but

managed to recover to $1.2897 ahead of the European open. Fresh selling emerged

into this session, taking cable to a fresh intraday low of $1.2867. Early

month-end models had suggested cable demand to be seen at today's fixes, but

with market moves since Monday we await to see the final predictions.

- UK house prices rose 2.3% y/y in Feb, according to the Nationwide, the

strongest rate of growth in 18 months. Nationwide Chief Economist Robert Gardner

said house prices will likely remain "broadly flat" across 2020.

- COVID-19 spread remains the key driver in markets, with its effects on risk.

Month-end flow relevant into the weekend.

- Cable support $1.2865, $1.2849. Resistance $1.2920, $1.2950.