Market Overview

Pound Vulnerable with Carney Due -Christopher Vecchio, Currency Analyst at DailyFX

Share:
Related EWU
The British Pound Is Trading At A 7-Week Low, And Some Analysts See Further Downside
Pound Woes Could Be Good News For These U.K. ETFs
Related FXB
The British Pound Is Showing Signs Of Volatility For No Real Reason
Article 50 Could Be Triggered Soon: Here's What You Need To Know About The Brexit Process
Dollar Bottom May Be Near (Seeking Alpha)

"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."

Posted-In: News Forex Global Economics Markets

 

Related Articles (EWU + FXB)

View Comments and Join the Discussion!