- GBP rises after Haldane strikes hawkish chords
- Mixed signals from the BoE causing choppy trade
- GBPUSD remains under pressure, although a close back above 1.2757 would change this outlook
The pound has risen today after the Bank of England Chief Economist, Any Haldane, gave a hawkish speech in Yorkshire. Selected comments are shown below , with the emphasis being ours:
- Considered a rate hike last week
- Saw grounds for holding off rate hike till later this year
- Brexit risk not gone but UK growth solid
- Downside skew in inflation expectations has dissipated
- Favours withdrawal of some stimulus before year-end
Yesterday saw BoE Governor Carney deliver a hawkish surprise by stating that the Bank weren’t close to raising rates which came after 3 members dissented from the decision to keep rates on hold at last week’s policy meeting. The dissent caused GBP to spike higher, Carney’s comments sent it lower and now the GBP is rising across the board after Haldane.
GBP is rising today following the comments from BoE member Haldane
Overall these mixed messages are making it hard for their to be a clear direction in the Pound and whilst technical levels are being respected to some extent. 1.2757 is an important level to watch for today’s close with a closing level above this forming a bullish engulfing candlestick on D1. On the downside 1.2633 could be key with a close back below this level seeing the bounce form Haldane as short-lived.
The GBPUSD has recovered a significant portion of yesterday’s decline. A close back above 1.2757 would change the outlook to a far more positive viewpoint.
This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.