GBP: All eyes on the Bank of England Thursday where consensus looks for a cut, with most seeing it at 25bp. Squeeze offers good levels for adding shorts.

EUR: Investors expecting a market friendly response to recent turmoil in Italian banks (i.e. state bailout). Otherwise, anticipation of next week's ECB likely to dominate given absence of meaningful data. We prefer the short side in EUR-X's

AUD: Employment figures watched Thursday, but most likely to simply reinforce strong trend. We continue to see AUD as well placed vs. NZD and CAD.