UK average earnings for November dipped to a 6.5% 3m/YoY rate – the lowest since last March. We should not get carried away with this data, however, as a more important release for the Bank of England will be the December CPI release on Wednesday.

Look out for testimony from BoE Governor Andrew Bailey today. The BoE is not known for over-communication between meetings, but markets now price 130 bps of BoE easing this year. If there is pushback against that from Governor Bailey, GBP/USD could turn back to the 1.2750/1.2800 area.