UK PM May won the party leadership............>

CABLE: UK PM May won the party leadership confidence vote, though the number of

those voting against seen higher than most had expected. Party rules dictate

that there cannot be another confidence vote for a year. Sterling had been

bought up on the expectation of the May win, but the lower margin of support

weighed back on the pound. Cable managed to post a high of $1.2672 before it was

sold down to $1.2593 but managed to settle back above $1.26 into the close. Rate

saw an opening high of $1.2650 into Asia before sterling drifted lower through

the session, touching a low of $1.2610 before it settled within a lower

parameter of $1.2610-30. Brexit headlines remain the key driving force for

sterling, market will watch to see if PM May's efforts can gain some concessions

on the Irish border backstop which could bring the DUP into line, as well as

some opposition MP's, let alone members of her own party. PM May travels to

Brussels today for an EU summit with European leaders (PM May due to speak at

the dinner around 1930GMT). 

- Cable support $1.2600/10, $1.2593 ahead of $1.2550. Resistance $1.2650,

$1.2672.