FXStreet (Edinburgh) - The sterling keeps giving ground on Wednesday, now dragging the GBP/USD to test the key 1.6700 support.
GBP/USD weaker post-BoE
The sterling is suffering the dovish tone struck by Governor M.Carney in today’s Quarterly Inflation Report by the Bank of England. The central banker crushed hopes of a rate hike later this year and asserted that the spare capacity is higher tan previously thought. “We remain comfortable with our forecast for a February 2015 start and see the risks even skewing now to May. No wages, no hiking”, commented Analysts Rich Kelly and Jacqui Douglas at TD Securities.
GBP/USD levels to consider
As of writing the pair is losing 0.62% at 1.6706 with the next support at 1.6699 (low Jun.4) followed by 1.6693 (low May 29) and then 1.6661 (200-d MA). On the upside, a break above 1.6850 (high Aug.13) and finally 1.6872 (high Aug.7).