I anticipate BOE to be hawkish. Consider to Short EUR/GBP.
BOE raised rates for the first time in more than a decade in November and are preparing to release their latest policy decision later. Markets had started to price in further tightening in May even before the positive upturn in wage growth, while a second hike seemed probable later this year.
There are 2 reasons why “hawkish bias” is expected:
Furthermore, it was reported that more than a million staff in England’s National Health Service may receive pay increases of more than 6 per cent over three years which will overall wage growth. The main focus for BOE will be the monetary policy statement and votes by committee favouring a rate hike versus keeping rate steady.