Currency Analyst since 2010

GBP/USD: Carney’s speech

-          The Bank of England will consider more stimulus if financial conditions tighten or recovery risks falling short.

-          There are signs that the UK economic recovery is broad based, set to continue.

-          Upward move in market expectations of BOE rates could, at margin, affect real economy.

-          Nobody should assume that 7% unemployment will be trigger for rate hike.

-          It is right to bring inflation back to target more slowly.

GBP/USD jumped from $1.5426 to $1.5550 before weakening to $1.5510. Carney wasn’t as dovish as expected. In fact, his comments about economic recovery were positive.

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