COMMENT-GBP bears hope BoE scythes path through rate cut jungle

Sterling shorts hope the Bank of England clears a route through thick foliage towards a June interest rate cut via a dovish hold next week (May 9).

Deutsche Bank and HSBC both expect the BoE to begin reducing rates next month, although the market is less convinced; the perceived probability of a June rate cut currently stands at 37%. (0#BOEWATCH)

If there is to be a BoE rate cut in June, it will likely be delivered by the narrowest of margins, 5-4, with chief economist Huw Pill and "external" hawks Megan Greene, Jonathan Haskel and Catherine Mann opposed.

June will be the last Monetary Policy Committee meeting attended by Ben Broadbent, before Clare Lombardelli replaces him as deputy governor for monetary policy.

CFTC data on FX positioning due at 1930 GMT will show if the net GBP short rose in the week ended April 30, after the biggest increase in bets against the pound in a single week since 2007 in the prior week.

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