The early enthusiasm for EU Tusk's proposed...>

CABLE: The early enthusiasm for EU Tusk's proposed flexible Brexit extension led

cable to a high of $1.3123 but that early excitement quickly faded and rate

drifted off to $1.3056 into NY. Release of US Employment data saw a volatile

reaction, initially touching $1.3080 before rate dropped to $1.3027. Recovery

efforts proved difficult and sterling lost further ground, the downward move

given added weight as the opposition Labour party lashed out at UK PM May,

highlighting their disappointment that the government has not offered "real

change or compromise" in Brexit discussions, thereby making a near-term deal

less likely. Focus on EU's response to the UK's appeal for a flexible Brexit

extension to June 30th. Cable dropped to an extended low of $1.2987, but buyers

were quick to move into the dip, nudging it back to $1.3020 in post Europe

trade.

- Brexit remains on the agenda into next week. Weekend press watched for any

revelations. Final Cooper Bill reading in the House of Lords Monday.

- Support $1.2987, $1.2978/74, $1.2950. Resistance $1.3050-55, $1.3080.