FXStreet (Łódź) - The TD Securities FX Research Team note that BoE chief Mark Carney's dovish remarks resulted in a 46-point drop in teh GBP/USD, followed by a 25-point rise on remarks more in line with Carney's earlier hawkish Mansion House speech.

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"Indeed, both Carney and Bean suggested that the MPC had with the apparent certainty the market had imputed to rates remaining on hold this year, given the dull market reactions to data surprises."

"The communication challenge of managing the transition from cautious optimism into confidence in a self-sustained recovery that would need less monetary accommodation in the not so distant future that the BoE is having now might be a harbinger for the challenge the Fed is going to confront later this year, if employment and inflation data remain supportive and the housing market regains momentum."

"Therefore, one should expect volatility in FX markets to pick-up from historically low levels as we enter into the second half of the year."


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Forex pairs in this Article » GBP/USD

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