Two banks see oversold conditions after today's moves
BNP are out with a note saying that the pound looks oversold vs the euro and reckon that the market pricing on rate hikes has been pushed back to far
BNP's model signal's that GBP positioning is short and EURGBP is overbought. They expect that tomorrow's labour market data will show wage growth accelerating
Danske concurs on the EURGBP trade and likelihood of a jump in wages and recommends selling at 0.7468 for 0.7000, with a stop at 0.7680. (they should be in that trade at time of writing)
I concur x2 on the labour report tomorrow. If we get strong wage numbers again then this fall today will be a long distant memory and we'll be looking up once again
