Carney doesn’t seem too enthusiastic on raising rates –

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Is the November hike going to be a “one and done”? There are higher chances of that happening. The Governor of the Bank of England, Mark Carney, did not offer any hawkish signs.

Appearing before parliament, Carney repeated that a rate hike in the coming months “may be appropriate”. Using the singular for the number of hikes and the plural for the number of months sounds like it lacks enthusiasm.

Carney adds that the BOE assumes there will be a transition period for Brexit and that the Bank has contingency plans for worse outcomes. This is something he said before.

So it’s one hike, and “the coming months” does not even explicitly say it is happening in November. We can still expect a move in November, as it is when the BOE releases its Quarterly Inflation Report (QIR). Bigger decisions are taken on these “Super Thursdays” which occur in February, May, August, and November.

Earlier we learned that inflation reached the top of the range: 3%. This was expected and did not trigger any upside movements. This is the first out of three major reports: tomorrow we will get the jobs report and Thursday features retail sales.

GBP/USD is sliding down within the range, trading under at a low of 1.3230. Support awaits at 1.3220. Further support is at 1.3130.

Update: GBP/USD loses support and heads towards 1.32.

More: GBP/USD is becoming complicated, like Brexit negotiations

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Yohay Elam – Founder, Writer and Editor
I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me.

Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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