• BOE's MPC meeting minutes: This event is scheduled today that signals how interest rates regulations would be. Bank of England's Monetary Policy Committee voted to maintain the bank rate at 0.5% at its 11^th May 2015 meeting.
  
  
• BoE's MPC Asset Purchase Facility Votes: The MPC of BoE also voted to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion on last meeting. This would be reviewed in this meeting as well.

This event is quite significant as the BoE's official interest rate is the repo rate and this repo rate applies to open market operations of the central bank with a group of counterparties such as security firms, building societies and subsidiary banks etc.

According to the latest inflation report released on May 13^th, the BoE revised down its GDP growth estimates and signaled a rate rise may not happen until mid 2016.

Hence, we think it is going to be healthy for pounds stability if the voting members like to maintain or hold the interest rate unchanged.

Delta hedging on EURGBP:

Let's visualize a trader thought implied volatility in the near month EUR/USD option was overpriced; therefore he tends to short the volatility. And suppose we are shorting an ATM call option with an amount of 100,000 EUR.

If the delta is negative 0.5 since this is an ATM option, the amount would be -50,000 EUR. To remove this potential risk taking place when the underlying market moves, we can buy 50,000 EUR against pounds in the spot market.

This allows the delta neutral position. If prediction goes accurate then profit is certain by shorts on call option with nil risk as the market moves around as long as you continue to update the Delta hedge.

But always keep in mind that shorting an option in this case means returns are possible only when volatility falls.