Bank of England Governor Carney has just shocked the market signaling that interest rate hikes could come sooner than the market expects. GBP has skyrocketed across the board on these comments and it should. I just sat in with FXStreet’s Dale Pinkert on Monday saying that UK fundamentals remain strong but I believed that sterling would take advantage of the low volatility and summer trading doldrums to consolidate further. I didn’t think Carney would rattle markets until the August Inflation Report. Instead, he is well ahead of schedule and has put sterling back on track to reach new highs across the board. Already, $GBPUSD has probed 1.7000 and $EURGBP has broken below 0.8000.
- Britain’s ‘boomless boom’ baffles the experts (The Telegraph)
- Mark Carney’s Speech at the Mansion House Bankers and Merchants Dinner, London (Bank of England)
- The Bank of England has good reasons to tighten – in good time (FT)
- Dollar Knifed, Carney With a Dagger (AshrafLaidi.com)
- Sterling and gilt yields rise on BoE comments (FT)
- Carney Rate Hike Talk Drives Over-Eager Buying Of The British Pound (Seeking Alpha)
- Carney’s cable combustion: Is the BOE using sterling as monetary policy? (Forex Live)
- The Cable Zones (FMFX)
- Today’s Appearance in FXStreet’s Live Analysis Room (FMFX)