GBP shrugs off 'hawkish hike' to finish.......>

FOREX: GBP shrugs off 'hawkish hike' to finish lower

-Sterling initially strengthened as the first read of the BoE release was

hawkish: a unanimous hike and 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.

-GBP wasn't the only poor performer in G10, with the EUR slipping against most

others and showing below the $1.16 handle 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- and 100-dmas after a volatile week

following the BoJ decision, and bears look for a close below Y129.20 for the

next leg lower.

-Friday's nonfarm payrolls release takes focus. Markets look for a 192K headline

reading and AHE of 0.3% m/m, 2.7% y/y.