* A big week for Sterling ahead, as the inflation data tomorrow is followed up by the jobs report on Wednesday and retail sales on Thursday. Arguably, the wage numbers are the standout of the lot, with exchange rate weakness distorting CPI and retail bolstered by seasonal factors.
* Over the weekend, Chancellor Hammond and minister Fox both advocated a transition deal to smooth over the Brexit process, but underlined the fact that it was in no way a 'back door' to staying in the EU.
* The GBP mood has darkened again with the uncertainty factor emphasised by the BoE. Whichever way you look at it, it is cause to take caution on the economy and extended GBP levels, but this clearly not a factor in EUR/GBP, which continues to grind away at the topside with circa 0.9200 the target from here.
* Cable is also looking reluctant to extend much further into the 1.3000's 1.3050-60 looks set to attract good offers, but more above here should be anticipated, and the near term consolidation around the figure level looks in preparation for a fresh test lower despite the latest hit on the USD.
* Over the weekend, Chancellor Hammond and minister Fox both advocated a transition deal to smooth over the Brexit process, but underlined the fact that it was in no way a 'back door' to staying in the EU.
* The GBP mood has darkened again with the uncertainty factor emphasised by the BoE. Whichever way you look at it, it is cause to take caution on the economy and extended GBP levels, but this clearly not a factor in EUR/GBP, which continues to grind away at the topside with circa 0.9200 the target from here.
* Cable is also looking reluctant to extend much further into the 1.3000's 1.3050-60 looks set to attract good offers, but more above here should be anticipated, and the near term consolidation around the figure level looks in preparation for a fresh test lower despite the latest hit on the USD.