Stronger than forecast UK Services PMI........>

CABLE: Stronger than forecast UK Services PMI released Tuesday boosted sterling,

the data upped outlook for an August hike, and in turn took cable up to

$1.3393(extending the recovery from its Monday pullback low of $1.3295, off

$1.3399). Rate saw a strong bounce back in NY as markets reacted to a wire

report suggesting the next ECB meeting could be 'live' for discussion on the QE

exit. Cable tracked Eur/USD's react rally, the momentum able to take it through

$1.3400 and on to $1.3409. However, rate struggled to hold these gains, eased to

$1.3385, closed the day around $1.3395. Risk appetite was given a boost in Asia

via US Mnuchin reported comments on Canada tariffs as well as Australian GDP.

This fresh risk related pressure on the USD allowed cable to extend recovery to

$1.3417 before it eased back to the $1.3400 into Europe. Fresh demand in this

session has taken rate on to a fresh intraday high of $1.3419, exposing the

May24 UK Retail Sales react high of $1.3422 ($1.3424 76.4% $1.3492-1.3205).

Above here and next resistance seen at $1.3455/60. Minor support noted at

$1.3400 ahead of $1.3380. BOE MPC Tenreyo due to speak at 1000GMT, BOE

McCafferty to be interviewed on Radio LBC at 1500GMT.