Session Recap: GBP falls after Carney sends dovish signals

By FXstreet.com | June 24, 2014 AAA

FXStreet (Córdoba) - The USD is mixed against the majors but remains in recent ranges. The GBP is underperforming amid lower prospects the BoE could hike rates this year after governor Mark Carney repeatedly said in a speech the exact timing of the first rate move would be "data driven".

Carney also said the timing of a rate move is less relevant than how the pace of rate increase and where it settles. "The path of interest rates is likely to be limited and gradual," he said.

The GBP/USD slid below the 1.7000 mark and triggered stops toward a low of 1.6973 .

The EUR on the other hand is holding up pretty well, having hit 4-day highs versus the greenback, ignoring the latest batch of disappointing data (German IFO , yesterday’s flash PMI).

Elsewhere, the AUD/USD gave up some ground and fell 0.26% to 0.9395. The USD/JPY has continued to oscillate below 102.00 and trades nearly flat on the day.

European stocks traded broadly lower while US futures point for a negative opening.

During the New York session watch for US consumer confidence and a series of housing indicators.

Main Headlines in Europe:

Fundamental case for EUR/USD lower continues - RBS

What’s the sentiment around the EUR/USD today? – Commerzbank and OCBC Bank

Germany: IFO – Business Climate down to 109.7 in June

United Kingdom BBA Mortgage Approvals above forecasts (41.3K) in May: Actual (41.8K)

European stocks flat after German IFO

BoE Carney's testimony: Falling wages suggest more spare capacity than thought

BoE Carney's testimony: Interest rate increases will be limited, gradual

BoE Carney's testimony: Shift from consumption to investment has begun

Dovish Carney weighs on the sterling

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