Pound tumbles from six-year high following BoE inflation hearing
City Index June 25, 2014 2:38 PM
<p>The pound was knocked off it six-year highs yesterday after the BoE inflation hearing, where we heard Governor Carney talk about the wage data being softer […]</p>
The pound was knocked off it six-year highs yesterday after the BoE inflation hearing, where we heard Governor Carney talk about the wage data being softer than expected. This affected the view of traders who may now have changed their view of an early rate rise in 2014. It seems like we are back on track for a rate rise in 2015, of course data dependant.
The pound is trading lower this morning, possibly gaining some momentum. With no UK data out today we are looking to tomorrow morning, with Carney speaking once again.
The yen has dropped below 102.00 for now with Japanese PM Abe launching the third arrow of economic reforms yesterday, and announcing that the Japanese economy is out of deflation, so things are looking up for the economy giving the yen some strength.
The Euro is still in a very tight range with the help of the weak GBP pushing the EURGBP higher. Still with no data in Europe today traders looking towards the CPI data which will start from Germany on Friday.
In the US today some important data is released with core durable goods out expected as the same as last at 0.3%, and then more importantly the Final GDP reading expected at -1.8% from last -1.0% could cause the USD to weaken.
Supports 1.3580 1.3560 1.3535 | Resistance 1.3615 1.3640 13670
Supports 101.65 101.40 100.70 | Resistance 102.15 102.85 103.00
Supports 1.6930 1.6900 1.6880 | Resistance 1.6970 1.7100 1.7060