More hawkish comments sends the GBPUSD back higher

BOE's Ramsden is more hawkish in his comments and that has led to a quick rebound in the GBPUSD.

Says:

  • MPC view that UK economic slowdown in early 2018 was temporary appears to beborne out by recent data
  • Expects UK GDP growth to resume at steady but unspectacular pace, conditional on smooth transition to eventual post-Brexit arrangement
  • Even subdued pace of growth is enough to exceed lower economic speed limit of around 1.5%
  • Our view of outlook and prescription for monetary policy remains conditional on data optimistic about technology leading to productivity gains and potentially higher, noninflationary wage growth
  • He backed MPC view and made that ongoing tightening of monetary policy was appropriate if economy develops as expected
  • Inflation persistently above target and sustained period of excess demand would represent a failure to meet our remit
  • The period of unusually subdued growth in wages appears to be coming to an end

The GBPUSD has rebounded on the more hawkish views and that has taken the price back above the 1.3398 resistance level (see earlier post). The price did not stay below the red line and it makes the tests of the MA lines (see blue lines) and the 38.2%, simply a corrective (and successful) test.