Deutsche Bank no longer thinks GBP is attractive. Also, expects a dovish BoE surprise.

Via a Deutsche Bank note on Wednesday.

On the pound:

• "Having been bullish on the pound since the start of the year, we no longer think the pound presents attractive risk-reward in the short term"

Citing:

• "a lot of the domestic good news for the UK is now in the price".
• says the upcoming Bank of England Bank of England The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy Read this Term meeting (on Thursday, 11 May 2023) holds the potential for a "dovish surprise", while the consensus is for a 25bp rate hike Deutsche says some dissenters could vote for a rate cut