• Cable hits 1.2946 after extending south from 1.3015 (19-week high in Asia)

• 1.2946 is lowest level since Monday (1.2926 was low that day)

• Drop to 1.2946 spurred by USD demand; GBP/EUR up to 1.1943 (two-week high)

• BoE rate hold expected at 1200 GMT; at least two MPC members to vote for cut

• The consensus forecast is that the BoE will reduce rates on May 8

• UK pay growth, excluding bonuses, up 5.9% in 3 months to Jan YY, as expected

GBPUSD

(Robert Howard is a Reuters market analyst. The views expressed are his own)