The Bank of England (BOE) Governor Mark Carney is likely to cross the wires at 1000 GMT, speaking at a press conference after the release of the central bank’s Financial Stability Report (FSR) and Financial Policy Committee (FPC) record from its July meeting at 09:30 GMT.
Markets are not expecting BOE Chief to shed any light on the monetary policy outlook, as he nay make some comments on financial system risks and possibly macroprudential policies, in light of the FSR. However, Carney could highlight the risks to the UK and global economic outlook amid ongoing trade war and falling inflationary pressures.
The BOE rate-setting Monetary Policy Committee (MPC) decided to hold the Bank rate unchanged at 0.75% in June. In its forward guidance, the MPC mentioned, “downside risks to growth have increased” both in the UK and in the rest of the world.
How will it impact GBP/USD?
FXStreet’s Analyst, Haresh Menghani notes, “From a technical perspective, any subsequent recovery is likely to confront some fresh supply near the 1.2565-70 region, above which the momentum might get extended, though runs the risk of fizzling out rather quickly near the 1.2600 handle amid persistent fears of a no-deal Brexit.”
“On the flip side, the 1.2500 handle, closely followed by the 1.2480 horizontal zone now seems to protect the immediate downside, which if broken might turn the pair vulnerable to break through the recent swing lows support near the 1.2440 region and head towards challenging yearly lows, around the 1.2400-1.2395 area,” 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.