Tuesday witnessed a recovery from.....>

EURO-STERLING: Tuesday witnessed a recovery from Gbp0.8753 to an eventual high

of Gbp0.8795 before rate settled around Gbp0.8775/80 into the close. Early

consolidation in Asia between Gbp0.8775/80 before it eventually extended the

base to Gbp0.8770 in opening European trade. Focus on today's European Council

meeting, Brexit on the menu with PM May providing the appetizer though not

staying for the roundtable dinner. Expectations from this meeting have been

deflated by Sunday's failure to bring the two sides closer though there remains

some underlying optimism. UK CPI this morning in focus, an easing from August's

strong data widely expected with median 2.6%yy from 2.7%, though some see chance

for a softer 2.5% release. Support in the cross seen into Gbp0.8750, resistance

Gbp0.8787/95.