LONDON, Feb. 9 (MNI) - Sterling's early attempt to recover were thwarted as cable met decent resistance ahead of $1.5650, allowing euro-sterling to track euro-dollar's stronger recovery, the cross break above stg0.8800 seen adding to the pound's underlying negative tone. Data showing a wider-than-expected UK trade deficit also weighed.

STERLING SUMMARY: Opened early Europe at $1.5639, stg0.8773

rate tracked reaction to the late fall in the Dow, as well as reports that a UK press website had released the poor BRC retail sales data early. Rate initially eased to $1.5565 on early risk aversion trade before meeting decent demand interest that allowed rate to recover. Move up seen in tandem with euro-dollar, this rate reacting to reports that ECB Trichet had left a BIS Sydney conference a day early, while the actual release of weak BRC retail sales had little effect, the rate taking a boost from headline RICS housing data. Rate pushed to session highs of $1.5633. Asian sovereign lifted rate on to $1.5647 before momentum faltered. Rate remained buoyed by euro-dollar's extended recovery, but continued to meet stiff resistance ahead of $1.5650. Euro-sterling break above stg0.8800 provided a counter weight, with release of disappointing UK trade data taking rate back below $1.5600, meeting support at $1.5570.

UK:Reported comments from UK officials Tuesday, * FSA says Hector Sants to step down as head in summer of 2010.

UK: Data released in the UK Tuesday, * Dec global goods deficit Stg7.278bn vs Stg6.798bn in Nov - Dec global goods/services deficit Stg3.262bn vs Stg2.926bn in Nov - Dec global goods deficit ex oil/erratics Stg6.891bn vs Stg6.115bn Nov - Dec global goods deficit median forecast Stg6.7bn; total Stg2.75bn - The global goods deficit in Dec widened to Stg7.3bn from Stg6.8bn, higher than the median forecast for a Stg6.7bn outturn. Including services the shortfall hit Stg3.3bn, above the median of Stg2.75bn. the latest widening in the goods deficit was mainly due a widening in the non-EU gap to Stg3.6bn from Stg3.1bn as imports rose sharply by 7.6%, the largest increase since March 2005 against a 5.5% increase in exports. There were large increases in imports of oil and aircraft from non-EU countries. Excluding oil and erratic items the total goods trade the shortfall widened to Stg6.891bn from Stg6.115bn mainly due to higher imports of cars and capital goods. * BRC Sees Worst Sales For A January On Record - BRC: UK Jan Like-for-Like Sales -0.7% y/y; Total +1.2% y/y - BRC UK Nov-Jan Like-for-Like Sales +2.0% y/y; Total +3.9% y/y - BRC Says Worst Total Sales Growth for a January on Record - UK retail sales growth plunged in January, with total sales seeing the worst outturn for a January on record, the British Retail Consortium/KPMG survey found. The exceptionally cold weather distorted sales and the BRC warned it was hard to see the underlying trend in UK retail sales. The BRC said that like-for-like sales fell 0.7% in January from the same month a year ago while total sales were up 1.2%, compared to a 3.2% rise on the same basis in January 2009. The 1.2% total sales outturn was the worst of any month since May last year and the worst for a January in the history of the BRC survey. Like-for-like sales balance was also the weakest since May. * RICS: House Prices Rise; Activity Plunges - RICS: Net 32% Surveyors Saw UK House Prices Up In Jan Vs 30% Dec - Buyer Enquiries; House Sales Plunged In January Due To Weather - UK house prices rose in January but housing market activity plunged as a result of the freezing weather, according to the latest survey by the Royal Institute of Chartered Surveyors. In the three months through January a net 32% of surveyors reported a rise in house prices, up from 30% in December, above analysts' median forecast for a 27% outturn. All the housing market activity indicators, however, nosedived with new buyer enquiries, new instructions and agreed sales balances turning negative. The new buyer enquiries net balance crashed to -20% in the January survey from 18% in December, the agreed sales net balance was -15% compared to 19% and the new instruction net balance -5% from 15% the previous month.

- John Webb London bureau (44 207) 634 1628 jwebb@marketnews.com

Rates in London Trading TIME EURO-USD USD-YEN CABLE EURO-YEN EURO-STG 0600 GMT 1.3723 89.54 1.5639 122.80 0.8773 0700 GMT 1.3729 89.54 1.5643 122.94 0.8775 0800 GMT 1.3717 89.53 1.5584 122.82 0.8800 0900 GMT 1.3729 89.69 1.5584 123.14 0.8808 1000 GMT 1.3725 89.70 1.5581 123.18 0.8811 1100 GMT 1.3712 89.59 1.5575 122.84 0.8802