Rabobank - "The sheer size of sterling’s recent fall means there is scope for some near-term correction. Another positive set of UK employment data, due later in the week, could be the trigger for a slightly better tone in the pound. Also on Wednesday is the release of the minutes of the February MPC. This is likely to again confirm a clear majority of the committee in favour of steady rates, with perhaps just vote in favour of more QE. The minutes are also likely to highlight upside risks to inflation meaning that this release also has the capacity to bring some support to the pound. That said, respite could be short-lived insofar as Thursday brings the release of the January public sector borrowing data. We continue to view rallies in sterling as selling opportunities. Whether cable or EUR/GBP falls hardest near-term is dependent on the direction of EUR/USD. While we see scope for consolidation and potentially more correction to EUR/USD1.30 on a 3 mth view, we expect the EUR to be pushing back to EUR/USD1.40 on a 12 mth view meaning that medium-term term we see greater scope for the pound to underperform the EUR."