At first I thought Carney was very concerned with inflation and yet it seems he is more concerned with Brexit and given the BOE independence, they can divert from the original inflation target i.e. withstand more inflation or GBP weakened to smooth the Brexit experience.
Given his talk, I don't think the PM will reverse her tone.
After a sell off in the UK Pound from the election last week, we saw a hawkish BOE this week. Well... another flip flop in the market that might have left traders confused.
Here's my perspective on GBPUSD - I believe we still have more down side for this pair, perhaps towards the 1.2510 area.
Technical analysis wise -
1) We have a bearish impulse formed, and...
The BOE’s interest rate decision scheduled for May 11 will be the main event risk on the UK economic calendar. Based on the market consensus the BOE is expected to keep its policy rate unchanged. However, what is far more important from the pound’s perspective and for the market is how many BOE policymakers might lean towards tightening and vote to raise interest...
Stalking a good buy price again for this pair, possibly a bounce somewhere near 0.8968 with wider SL (close to the trendline), or a breakout at 0.91020 (R2), while keeping close watch on its ATR for another round of volatility esp it's near the weekly range resistance already.
On Thursday BOE will publish its rate decision and monetary policy summary.
Following latest Carney's speech, people now know that BOE is starting to monitor the currency's weakness following Brexit - They will pay attention to what BOE will have to say about it in the coming meeting.
Technically 1.21 is the current support zone. The price is holding above it...
Well most of the participants are expecting a Pound to go down, but we already had a surprise effect with interest rate decision, so what to expect now?
1 Economy - nothing has changed yet, even though G is leaving, it will take time
2 Friday - due to some explanations on Behavioural finance studies, the market is most likely to be illogical during
1. IMO Dudley tipped to the dovish side, especially on key inflation highlighting that it is " rising again, but still low". Other rhetoric reaffirmed much of what has been said post the brexit vote e.g. Uncertainty being the biggest factor.
2. Meanwhile, Williams was notably more upbeat/ optimistic, shrugging off the US's shock miss NFP report to instead...
Price action heads towards 1.44 for a test or the daily trend line and resistance at 1.44.
Looking ahead we have BOE governor Mark Carney speaking on Tuesday and UK Manufacturing data out Wednesday and both can be seen as catalysts events to drive price above 1.44 or back down.
Look out for each news event as equally appealing trading opportunities are likely to...
I was shorting this pair for couple of days, now is (probably) time for some longs. Why? Move down was so strong, it needs to react back.
Entry i Butterfly's D point - 127.2% of XA, confimed by 161.8% of small correction. Not so much confirmation - we all know it is game :)
And couple of facts about Butterfly:
The general extension structure of the Butterfly...
GBPUSD went into an uptrend after it broke the January/February downtrend range. (Post-SNB funtimes)
In 1 hour BOE Gov Carney can bring us some further good news, like the BOE delivered recently allready.
Like in my USDCAD chart I mention here that in 6 hours from now Fed chair Yellen speaks as well.
If that is no strong news for USD we have a nice long on our...