GBP initially strengthened as the first.......>

FOREX: GBP initially strengthened as the first read of the BoE release was

hawkish: a unanimous vote to hike & an R* estimate seen toward the upper end of

the range (2-3% nominal bank rate). GBP/USD surged to $1.3125 before fading as

Carney stressed that policy remained wholly dependent on economic developments,

which remain outside of the Bank's mandate (namely, Brexit). GBP sales saw the

rate touch $1.3016, within spitting distance of the 2018 low at $1.2958, a

modest bounce was seen before the cross faded to lows heading into Asia.

- The EUR slipping against most others, with EUR/USD showing below the $1.16 for

the first time since mid-July. A woeful session for Italian and Greek bonds led

weakness in the single currency which now eyes YTD lows of $1.1509. EUR/JPY

remains trapped between the 50- & 100-DMAs after a volatile week following the

BOJ decision, with bears looking for a close below Y129.20 for the next leg

lower.

- USD/CNH was also in vogue, peaking at CNH6.8829.

- Friday's nonfarm payrolls release takes focus, with services PMIs from across

the globe also due.