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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY, EUR/GBP (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that while markets await the FOMC, the UK releases MPC minutes, labour market data and the CBI sales survey.

Key Quotes

“It is far too early for any cracks to appear in the MPC but unemployment probably fell again, at a brisk pace, with the rate down to 7.5%.”

“Forward-guidance is being adjusted and with wage growth still at 0.8% (so a mere 1.3% slower than CPI inflation), using unemployment as a reason to tighten policy would be daft. However, the strength of the labour market reinforces the sense of economic recovery and justifies sterling strength continuing.”

“If EUR/USD isn’t propelled through the year’s high by the FOMC, look for EUR/GBP to top out, and GBP/JPY to move higher.”
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