There are potential 'dovish risks' for sterling from BOE meeting - Deutsche

After the recent rally in cable, Deutsche Bank says that it is taking profit on its pound position against the dollar. Adding that they see a potential "dovish surprise" for the quid at this week's BOE meeting.

"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. A lot of the domestic good news for the UK is now in the price."

I'm guessing the dovish risks are more to do with the rates pricing here. Markets are expecting at least one more rate hike after the one this week but a further hike to bring the bank rate to 5.00% remains questionable at this stage. So, if there is some affirmation there by policymakers then that could result in a bit of a dovish spin for the pound.

/GBP GBP The Great British pound (GBP) or pound sterling is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, Gibraltar, South Georgia, and other pacific territories.The GBP is currently the fourth most-traded currency worldwide in forex markets after the US dollar, euro, and Japanese yen.As the oldest currency in continual use, the GBP holds great weight on the world market and is also the fourth largest reserve currency.The Bank of England (BoE) is the central banking auth The Great British pound (GBP) or pound sterling is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, Gibraltar, South Georgia, and other pacific territories.The GBP is currently the fourth most-traded currency worldwide in forex markets after the US dollar, euro, and Japanese yen.As the oldest currency in continual use, the GBP holds great weight on the world market and is also the fourth largest reserve currency.The Bank of England (BoE) is the central banking auth Read this Term