The Bank of England (BOE) Governor Mark Carney is scheduled to speak at an event in New Castle at 1000 GMT, with all eyes focussed on any comments on the monetary policy and economy.
No new surprises are expected from his speech, as Carney is likely to reiterate MPC’s recent hawkish stance that points to an August rate hike, in light of upbeat economic data.
The BOE rate-setting Monetary Policy Committee (MPC) decided to hold the Bank rate unchanged at 0.50% in June in a 6-3 vote pattern. Haldane joined McCafferty and Saunders to dissent on keeping rates unchanged this month.
How will it impact GBP/USD?
FXStreet’s Analyst, Haresh Menghani notes, “From a technical perspective, the pair retains its near-term bullish stance, especially after the recent sharp rebound from YTD lows, the 1.3050 area, set last Thursday. Hence, the ongoing momentum is likely to get extended towards 1.3275-80 intermediate resistance en-route the 1.3300 handle. A follow-through buying interest has the potential to lift the pair towards a short-term descending trend-channel resistance, currently near the 1.3335 region, where it is likely to show reluctance to extend the rally.”
“On the flip side, any meaningful retracement back below the 1.3200-1.3190 immediate support is likely to find some buying interest near the 1.3140-35 zone and is followed by a strong support near the 1.3100 handle. Only a decisive break below the mentioned supports might negate the positive outlook and realign the pair with bearishly trending short-term technical indicators,” Haresh adds.
About BOE Governor Carney
Mark Carney is Governor of the Bank of England and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Authority. His appointment as Governor was approved by Her Majesty the Queen on 26 November 2012. The Governor joined the Bank on 1 July 2013.
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