GBPUSD moves through yesterday's 1.5650 highs after Carney drops another hint
Some discussion today over the interpretation of Carney's comments at the Magna Carta lecture last night and particularly this quote
"It would not seem unreasonable to me to expect that once normalisation begins, interest rate increases would proceed slowly and rise to a level in the medium term that is perhaps about half as high as historical averages.In my view, the decision as to when to start such a process of adjustment will likely come into sharper relief around the turn of this year"
I can see both sides of the coin with regards to what he may infer. There's a case to say he's talking about starting the process of deciding when to raise rate, or whether he means that rates will start rising at the turn of the year
Given his earlier comments to the Treasury committee I'm inclined to think that he has reaffirmed those comments that we are approaching the time to start raising
It's all interpretation and we can get too bogged down digging into the language. To take it in a more simple and broader context, he was hawkish on Tuesday and didn't reverse that yesterday. That's as simple a definition as the market needs to move the pound higher
GBPUSD has broken the highs seen yesterday as it moves through 1.5650 to 1.5668. Resistance was in place at 1.5650/55 and we need to watch that for signs of support now
Next resistance is at 1.5678, 1.5700, 1.5730/35 and 1.5785/90
GBPUSD H4 chart
