Bank of England may pause rate hike after recent sluggish economic data, short GBP/USD?
Odds of a rate hike at the BOE's meeting have slumped close to 10% from around 90% in late-March amid signs of a slowing economy and after Carney warned that a hike in May was far from certain.
Immediate market reaction will be determined by whether the Bank of England delivers a hawkish hold or whether it is starting to show signs that it shares more pessimistic outlook for the economy. If it's the latter, GBP/USD may drop towards 1.3420.
Data shows that UK retail sales plunged 4.2% from a year earlier, which was the sharpest declines since the survey began in 1995.
central bank will probably leave its 2019 and 2020 growth forecasts broadly unchanged which means rate hike cycle isn't over yet
