Wednesday's rate cut saw sterling survive.....>

CABLE: Wednesday's rate cut saw sterling survive an initial negative react,

bounced back from react low of $1.2832 to a fresh intraday high of $1.2977, with

the corrective pullback able to hold above $1.2900 in early NY. However, risk

outlook improved through the NY afternoon in anticipation that Trump would take

decisive action (was due to speak after markets closed at 2100ET) with UST

yields improving which boosted the USD. Cable sank to $1.2805 into the close.

Disappointment with Trump speech saw risk knocked again, allowed cable to edge

to $1.2849 in Asia before it settled around $1.2820 into Europe. Fresh pressure

on the pound emerged which took cable to an extended low of $1.2781, but able to

bounce back to $1.2815 at writing. EUR/GBP also reflected the pressure on the

pound as rate continued to push higher within the parameters of the topside of

its 1.0% 10-dma envelope and the topside of the 2.0% envelope, the 10-dma

pushing higher and exposing MNI Techs initial target level of Gbp0.9000. Cable

support $1.2780/70, $1.2750/40. Resistance $1.2850, $1.2880. 

- Light calendar for the UK Thursday. Focus on expected ECB action at today's

rate announcement and Lagarde presser.