Home Carney marks up the pound

BOE Governor Mark Carney  helps boost the pound with more  words about a Brexit and encouraging talk about  inflation.

GBP/USD is already touching 1.46, up over 100 pips on the day and extending the previous gains.

While Carney insists his words about the referendum are not political, he draws a clear difference between a Bremain and a Brexit vote. A vote to remain in is likely to result in a rebound in economic activity while a Brexit could cause a slower growth and a weaker pound. There is nothing really new here and everything makes sense, but  the public  is certainly listenning to the repetitive message.

Also on the much less political topic of inflation, which actually is the mandate of the BOE, Carney says that inflation has passed its trough. Is he declaring victory on inflation? In any case, with no extreme  fear of deflation, the pound has room to rise on further expectations for a rate hike.

Here is the GBP/USD chart. The  next resistance is at 1.4650. Support awaits at 1.4440.

More:  Buying USD and JPY much better choices than EUR in case of a Brexit

GBPUSD higher May 24 2016 technical chart

Yohay Elam

Yohay Elam

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 a 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.