Carney’s Speech Boosts GBP

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Carney’s Speech Boosts GBP
Carney’s Speech Boosts GBP

Carney’s Speech Boosts GBP

The BOE Governor Mr. Carney pointed out in an interview with Yorkshire Newspaper that he does not see any necessity for the stimulus as the recovery has strengthened and broadened in the U.K economy, and would only require if the circumstances go unfavorable. Moreover, the housing price index also showed good signs for the housing sector as the HPI increased by 0.9% in the previous month. The British Pound gained more than 90 points instantly against the U.S. dollar in the Asian session on Friday where it is back in the bullish channel.

It is currently trading at 1.6079 where a move below 1.6072 could drag it down to 1.6048 and 1.6024 where selling could take good pace. However, if it moves above the resistance level of 1.6143 then its next targets would be 1.6167 and 1.6191.

Sluggish Euro

The euro has been playing in a wider range for the past few days where it failed to make a substantial breakout on either side, and is currently trading at 1.3491. It must move above 1.3518 to find its way up to 1.3528, 1.3538 and 1.3550.

Whereas, a move below yesterday’s low could take it down to 1.3463 and 1.3452. Today’s fundamentals include the French consumer spending data along with the ECB President Mr. Draghi’s speech later in the European session where good volatility may be seen in the euro market.

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The bulls are comfortable as long as the pair is trading above the critical support level of 1.3420, which is around 70 points down the hill from its current trading price.

Aussie Back in Bear’s Control

The Australian dollar is trading in a wider range of 60 points for the past 3 days where it is trading at 0.9358 that is below its today’s pivot point. No such critical fundamental is due for the Aussie today so technical levels would seem to be ruling the most; therefore, a move above .9370 could take it up to 0.9385 and then 0.9410 from which sellers would start entering the market again.

However, a sustainable move below 0.9340 could take the pair down to 0.9325 and 0.9310, as it would remain bearish as long as it trades below 0.9410.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com