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12 Feb 2014
GBP/USD hits 1.6540 on hawkish QIR
FXStreet (Edinburgh) - The sterling is now accelerating its intraday upside against the greenback, lifting the GBP/USD beyond 1.6540.
GBP/USD boosted by Carney
The BoE’s Quarterly Inflation Report showed a hawkish tone, with Governor Carney underlying the importance of forward guidance in the current recovery. The central bank also revised up its UK growth forecast to 3.4% for the present year from 2.8%. Careney also informed that the unemployment threshold would not be replaced with another measure and that inflation figures would remain around the bank’s target. Regarding a rate hike, he hinted that the recovery still needs to be more balanced and rate hikes would be gradual when/if the situation requires so. Speaking about GBP, Carney argued that a strong currency would weigh on the exports sector as long as the global demand remains weak.
GBP/USD levels to watch
The pair is now up 0.35% at 1.6509 with the next hurdle at 1.6565 (high Jan.30) followed by 1.6606 (high Jan.29). On the flip side, a break below 1.6425 (low Feb.12) would open the door to 1.6392 (low Feb.11) and finally 1.6384 (low Feb.10).
GBP/USD boosted by Carney
The BoE’s Quarterly Inflation Report showed a hawkish tone, with Governor Carney underlying the importance of forward guidance in the current recovery. The central bank also revised up its UK growth forecast to 3.4% for the present year from 2.8%. Careney also informed that the unemployment threshold would not be replaced with another measure and that inflation figures would remain around the bank’s target. Regarding a rate hike, he hinted that the recovery still needs to be more balanced and rate hikes would be gradual when/if the situation requires so. Speaking about GBP, Carney argued that a strong currency would weigh on the exports sector as long as the global demand remains weak.
GBP/USD levels to watch
The pair is now up 0.35% at 1.6509 with the next hurdle at 1.6565 (high Jan.30) followed by 1.6606 (high Jan.29). On the flip side, a break below 1.6425 (low Feb.12) would open the door to 1.6392 (low Feb.11) and finally 1.6384 (low Feb.10).