Pound tumbles from six-year high following BoE inflation hearing

<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.

 

EUR/USD

Supports 1.3580 1.3560 1.3535 | Resistance 1.3615 1.3640 13670

 

USD/JPY

Supports 101.65 101.40 100.70 | Resistance 102.15 102.85 103.00

 



GBP/USD

Supports 1.6930 1.6900 1.6880 | Resistance 1.6970 1.7100 1.7060

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.