The UK political landscape continues to.......>

CABLE: The UK political landscape continues to operate in a state of impasse as

the key protagonists remain at loggerheads. UK PM May has told rebel Tory MPs

she will not back down over a key Brexit vote on Wednesday. Elsewhere EU chief

Brexit negotiator Michel Barnier has noted that "we have advanced on some

separation issues for which European businesses need certainty, such as customs,

VAT, Euratom and certificates for goods" although issues surrounding the

Northern Irish border remain. Looking forwards, the Independent has discovered

that "EU leaders will sound the alarm on the lack of progress in Brexit talks

and pledge to step-up contingency plans for the UK crashing out with no deal" at

next week's EU summit.

- GBP/USD trades at $1.3166, initial resistance is noted at $1.3186 (Hourly

resistance June 20) while support is seen at $1.3148 (YtD Low).

- Immediate focus is on Thursday's BoE decision & evening address from BoE Gov.

Carney. The mkt is treating the meeting as a staging ground before Aug's

decision when the MPC could raise rates. MNI PINCH' market-implied probability

of a 25bps hike at the Jun meeting is less than 2%, but jumps to 45% for Aug.