Cable down to lows of 1.3805 on the day
Money market pricing for a BOE rate hike in May tumbles to 36%. It previously had a pricing of just above 50% coming into today. What was seen as a coin-flip is now slowly being taken off the table.
Poof, we're now down to 32%. A miss towards the downside on the report here was expected, but that was a bigger miss than the NIESR report had estimated and ONS commented that the shortfall in GDP had very little to do with weather-related symptoms.
If the latter is in fact true, then there is some other underlying cause of a slowdown for the UK economy that the BOE should not overlook surely. The annual growth rate of 1.2% is the weakest since Q2 2012. If that's not worrying, I don't know what is.
Meanwhile, cable is now testing key levels at the 61.8 retracement level as mentioned earlier here @ 1.3804. If that fails to hold, the 1 March low of 1.3712 will be eyed as the next key level to the downside.
