Bank of England Governor Mark Carney delivered the long awaited Inflation Report after “scrapping” forward guidance just a month ago. What Carney gave is what some are dubbing stronger guidance. He recognized and upgraded the UK economic recover and then added more indicators to produce “Forward Guidance – Phase 2”. Whatever you want to call it, the markets liked it and sterling rallied hard across the board. The rally continued even during the Asian session as those traders got the opportunity to digest the Inflation Report and Carney’s remarks. Now with sterling at key resistance levels, does it have the strength to go higher? What’s even more interesting to watch is if sterling can continue to rally in the face of a dovish BoE.
- It’s the hot money, stupid (FT Alphaville)
- Carney broadens forward guidance with extra slack (City Index)
- How Far Off Have the BOE’s Predictions Been? (WSJ)
- The U.K. Economy: Five Key Takeaways (WSJ)
- 3 Reasons Why the Bulls Loved The BOE Inflation Report (Baby Pips)
- BoE risk of a hike bought forward, GBP bid (FXStreet)
- Mark Carney putting a Canadian twist on the Bank of England (Forex Live)
- ‘RIP, Forward Guidance’: Revising Our Sterling Forecasts (eFXnews)
- A Look at British Pounds From the Top Down (All Star Charts)