Forex Flash: GBP continues to weaken ahead of Carney testimony – BTMU

Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that the pound has continued to weaken, with EURGBP rising towards 0.8700.

He writes, "There is a lot of event risk for the pound in the week ahead with BoC Governor Carney who will replace BoE Governor King set to testify before the Treasury Committee on Thursday. Any comments regarding the inflation target will draw market attention with expectations currently high that it could be changed opening the door to looser monetary policy ahead weighing upon the pound."