Stronger month-end cable demand,......>

EURO-STERLING: Stronger month-end cable demand, over EUR/USD, allowed EUR/GBP to

squeeze down to Gbp0.8519 into Friday's close. Weekend polls, ahead of the UK

Dec12 general election, were basically unchanged but BMG poll saw the margin of

the Conservative lead over Labour as just 6% (which would suggest another hung

parliament). Traders marked sterling down into Asia, the cross jumping to

Gbp0.8544, in thin opening conditions, before rate drifted back through the

balance of the session to Gbp0.8529. Europe knocked rate to Gbp0.8524, recovered

to Gbp0.8534 before it settled around Gbp0.8530. Rate remains below its 10-dma,

currently coming through at Gbp0.8549, which keeps underlying bearish tone in

place. Traders aware that E820mln on EUR puts roll off at today's NY cut with a

strike of Gbp0.8500. Gbp0.8550 also holds the strike of an expiring option,

E608mln of which E436mln are EUR puts. UK Mfg PMI at 0930GMT provides morning

data interest, though Wednesday's Services PMI viewed as more key. Politics

(election/Brexit) remains a key driver of sterling.