Money markets see 85% chance of a 25 bps BoE rate cut in May

Money markets are fully pricing a 25 basis point Bank of England (BoE) rate cut in December and see an 85% chance of a May cut, Reuters reported in the last minutes. 

The GBP/USD pair, which came under strong bearish pressure following the disappointing GDP data from the UK, was last seen trading at 1.2970, erasing 0.67% on a daily basis.

The UK's Office for National Statistics (ONS) on Monday reported that the economy contracted by 0.3% on a monthly basis in November and Manufacturing Production declined by 2% on a yearly basis.