GBP/USD Flows: GBP bounce but BOE Risks Still on Thursday

GBP has gained ground versus the USD and EUR today, with technical driven trading rather than fundamental news.  However, the money market has become less dovish, with only 1 MPC member expected to vote for a cut at the May 9 BOE meeting and some arguing that it would be premature for the BOE to signal a rate cut.  However, we would argue that the BOE could now be more dovish than the market expects, given Bailey hints after the March meeting and our view that a 25bps cut is likely later in the week.  This could see GBP losing some ground later in the week.