Market might be underestimating Bank of England's (BOE) policymaker's zeal to hike interest rates and market might be too dovish in their expectations of the path of hike, according BOE deputy governor, Minouche Shafik, at least her speech indicate that way.

She said, financial asset prices not only reflect most likely outcome but a range of probabilistic outcomes. So what is implied through government bonds and interest rate swap market is not necessarily truly reflecting participants' expectations of what is going to happen and should the downside risks from world economy fails to materialize and in absence of further shocks, she expects economy to warrant a steeper rate hike path from BOE, once wage growth falls in line with inflation returning.

It seems from her speech, there exist a clear disparity over the upcoming risks or shocks to the economy among market participants and the policy participants.

However, we at FxWirePro partially agree with Ms. Shafik, clouded by rate hike from FED, market hasn't well priced the diminishing risks of EU referendum, as a deal is clearly in sight.

Pound is currently trading at 1.512 against Dollar.