• wage data softer than expected
  • productivity gap 16 percentage points vs pre-crisis trend
  • equilibrium unemployment may be lower than estimated

BOE’ Miles:

  • thinks there may be more spare capacity than 1-1.5% of GDP range

Pound under pressure from initial comments and Bean

GBPUSD now taken out 1.7000 bids to test next strong line at 1.6980

EURGBP 0.8020.