• EUR/GBP downside risks pick up, putting key support at 0.85 in focus

• Wider EZ/UK 10-year yield spreads lean in favour of sterling

• Hawkish wage data in UK jobs report will concern BoE officials

• Private sector regular pay growth posts largest monthly rise since May

• Markets slightly reduce BoE easing bets - 2024 cuts = 46bps from 50bps

• However, the bigger focus is on CPI. Particularly services CPI

• A hot CPI print will likely take EUR/GBP through 0.85

• Near-term resistance: 0.8550 (55-DMA), 0.8580-85, 0.8600-05 (200-DMA)

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