THE MAIN EVENT, this week is of course the BoE...>

UK: THE MAIN EVENT, this week is of course the BoE tomorrow (we'll release

preview around lunch UK time). 

As mentioned, there's plenty of debates on a rate move with both side of the cut

or unch camp making good arguments. 

-SONIA has seen plenty of volatility and swings around the 50/50 priced in. The

vote across sells desk ranges from 7-2 unchanged to 8-1 for a cut. 

-Carney/ Tenreyro / Vlieghe have showed of late that they would be willing to

pull the trigger, furthermore you could still argue that Data are still trending

on the softer side , while also adding growth risks following the Coronavirus. 

- Desk also note that the window of opportunities to ease can been seen as quite

narrow given March is Bailey's first meeting and May is close to the June

deadline for the UK to request an extension on the transition period (30/06 is

the deadline).

- Technically, extension to 1.2905, 1.2889 and the 100d MA at 1.2860 are still

on the card. We have failed multiple times nearer that 1.2950 zone, with plenty

of resting bid all the way down, and the street long,long, long.