The Pound is holding above 1.2400 but is under clear pressure and the bulls will have a fight on their hands to keep it above that psychologically important level this week.
The prospect of the ECB starting its easing cycle before the Fed and the Bank of England and delivering more rate cuts than both institutions this year may put downward pressure on the euro against the U.S. dollar and sterling in the near term.
EUR/USD rises for a second consecutive day after weak US retail sales data, but its recovery could be derailed if the upcoming US PPI report shows limited progress on disinflation.
Cable dropped around half-a-point after a slightly stronger-than-expected NFP report hit the screens, but next week is all about three central bank policy decisions
The British Pound remains vulnerable to further losses against the US dollar but continues to move back towards a multi-year high against the Japanese Yen. GBP/AUD set for a six day rally.