Cable extended losses in Asian trading, falling through the lows of July 6th of 1.6097 and triggering stops to trade to 1.6063. Bounces have been limited to 1.6105 with traders noting support at 1.6050 and talk of barrier option defense at 1.6000, the next key downside target. Fresh option interest is already targeting a further fall to 1.5800-1.5900 in coming sessions. The weak manufacturing data released Tuesday was the key factor in the sterling decline, and the tertiary data released in Asia today has had little impact. KPMG/REC reports that the UK job market decline in June was the smallest in 13 months while the BRC reports that annual shop price inflation in June fell to 0.7%y/y and the lowest levels since December. The UK Nationwide consumer confidence index reached an eight month high of 58 in June, improving from a revised 54 in May. Looking ahead, the UK government will be releasing the White Paper on the financial regulation proposal later today and HBOS house prices for June are due for release.