Trailed EUR/USD in Thursday trade. Rate.......>

CABLE: Trailed EUR/USD in Thursday trade. Rate initially touched a high of

$1.2707, where it again met headwind resistance in the $1.2700-10 area (Dec18

high $1.2706), the move aided by positive reaction to UK Retail Sales data, then

eased to $1.2679 before NY extended the correction to $1.2626 pre London fix.

USD came under pressure through the fix which allowed cable to recover to

$1.2694 before it drifted back to $1.2656 into the close. EUR/GBP extended its

recent rise, traded to Gbp0.9055 Thursday, consolidated these gains in Asia

between Gbp0.9038-50. Cable nudged up to $1.2674 in early Asia then eased to

$1.2644 but was seen picking up decent demand into Europe which lifted it to a

fresh intraday high of $1.2675. Brexit remains the key driver of sterling

direction. BOE left rates unchanged at the MPC announcement yesterday though

noted a mix of building inflationary pressures, signalling tightening will be

needed, but countered by current Brexit risk concerns.

- Support $1.2625/20, stronger into $1.2610/00. Resistance $1.2700/10.

- Option expiries of note $1.2500(Gbp1.11bn), $1.2700(Gbp1.04bn).

- UK Q3 GDP and Govt Borrowing data due at 0930GMT.