Trading on Carney’s speech
The Bank of England’s new Governor Mark Carney will speak today at 11:45 GMT.
RBS: “This week, with Carney expected to do his best to jawbone UK rates lower, GBP/USD may struggle to maintain recent positive momentum. With last week’s flash euro-zone PMIs also pointing to ongoing improvement in the euro area economy and the ECB comments that recent developments leave further rate cuts looking unlikely, EUR/GBP may have some upside.”
HSBC expects dovish comments and entered a macro tactical short GBP/USD position with a target at $1.5050, and a stop at $1.5820. Credit Agricole expects EUR/GBP to rise to 0.8650 today.
Chart. Daily GBP/USD
Chart. Daily EUR/GBP