Pound Vulnerable with Carney Due -Christopher Vecchio, Currency Analyst at DailyFX
"Certainly, the global selloff has hardly reached the European currencies, which have turned into a near-term safe haven of sorts amid turmoil in the commodity currency complex. But the British Pound today especially is vulnerable to a setback.
Bank of England Governor Mark Carney will give his first policy speech today, and in light of recent price action in the British Pound and UK Gilts, we are expecting a dovish tone to be struck. In the Quarterly Inflation Report released earlier this month, economic “circuit breakers” were identified that would signal a wind down of the BoE's easing program.
While the initial commentary from Governor Carney may prove to be dovish, it will take a concerted shift in his policy stance – even more dovish – in order for the desire effect to be achieved: softer UK yields. Accordingly, barring an overtly dovish tone, it is possible that the Sterling sets up an opportunity to buy the dip later today."
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