The more the market worries about the growth outlook in the UK, the more the prospect of further rate hikes beyond this week will a) fade away and b) scare investors. 

Sterling, even more perhaps than the Euro, is only being held up by rate expectations. This week’s data calendar might not be too bad for the Pound if Retail Sales and the Services PMI both bounce and core CPI remains at 6.9%. But at best, that will delay what seems an inevitable move by GBP/USD back below 1.20.