FXStreet (Bali) - BNP Paribas remains short EURGBP targeting a decline to 0.7000 ahead of the UK employment report at 9.30GMT. Key Quotes "The GBP has had a disappointing start to the week due to a soft CPI release but we do not think it makes sense to chase GBP lower from here." "In contrast to consumer inflation, wages are telling a different story of building price pressures as we expect the 3m/3m ex-bonus measure of compensation to rise to 3.0% y/y, which would be the fastest pace since January 2009. We also see the unemployment rate at a new low of 5.4%." "Despite our economists pushing back their expectation for BoE rate lift-off to May from February 2016, there is still plenty of scope for UK front rates to adjust higher in reaction to stronger data as the market does not price a full BoE hike until Q1 2017." "STEER TM also signals that EURGBP currently appears overbought, with short-term fair value around 0.7100. Accordingly, we remain short EURGBP targeting a decline to 0.7000." For more information, read our latest forex news.