THAILAND: Central Bank Governor Selection Panel to Meet May 07

• A firmer tone for risk keeps the likes of AUD and GBP among the best performing currencies in G10 on Monday. Supportive GBPUSD price action may be underpinned by the slight hawkish bias to last week’s BOE meeting, and the UK flash services PMI surprising to the upside this morning, providing a moderate sterling tailwind.
• Bullish technical conditions remain intact for the pair, as a plethora of short-term risk events are awaited this week. Standing out here is the Spring Statement, that will include the OBR's forecasts and the release of the DMO's financing needs (including the gilt remit). Shortly ahead of the Spring Statement on Wednesday, the ONS will release February inflation data, and it is worth highlighting that Governor Bailey is due to deliver a speech on “growth in the UK economy” today at 1800GMT.
• Referencing the latest open interest via the CFTC report, SocGen note the market is longer of GBP than EUR, which SG believe sits uncomfortably with the parlous state of the UK’s public finances. They state there’s a good case for being long EUR/GBP here, regardless of this morning’s stronger PMI data, and remain bearish GBP vs. the Scandies.
• Pricing for an GBPUSD straddle expiring on Friday incorporates a move of +/- 90 pips from current spot levels of 1.2945. Initial firm support to watch is 1.2855, the 20-day EMA, whereas on the topside, the bull trigger is at 1.3015 (March 20 high).

• CANADA FEB FLASH FACTORY SALES -0.2% ON FOOD AND ENERGY

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