GBP review: Western Union

The pound fell below $1.47 to fresh five-year lows after key U.K. events today seemingly pushed further into the future the timing of a local interest rate hike.  

Meanwhile, BoE's March minutes voiced concern that sterling strength against the euro could weigh on already record low inflation. Sterling should also take cues today from a budget statement from Britain's finance chief that's due shortly. Downside risk for the pound is on the rise particularly ahead of an election in May that currently shows an elevated likelihood of ending with no majority winner or a hung parliament. 

Such an outcome would risk a period of political instability that could further erode the value of the pound. GBP sellers want to hedge against the heightened risk of further pound deterioration while buyer also want to hedge, though in a way that allows for them to partake in favorable market moves.