The highlight for Sterling this week will be tomorrow's release of April wage data and the employment report for May. We think softer wage and price data could emerge at any time and that market pricing of the Bank Rate (now at 5.50% for 24 January) is subject to a sharp downward revision. 

Let's see whether tomorrow's data gives BoE Governor Andrew Bailey the chance to push back against those aggressive tightening expectations when he testifies to a House of Lords committee tomorrow afternoon. Expect Sterling to hold onto its gains today, however. 

EUR/GBP is currently testing big support at 0.8540/50 - levels we see as worthwhile to hedge GBP receivables.