There’s been a move lower in the pound in recent trade after Mark Carney delivered a fairly dovish address in London. The outgoing BoE Governor warned that the rebound projected in the bank’s forecasts for this year was not assured and stated that the pace of economic growth in the Uk has slowed below its potential. Arguably the most dovish line was that the “MPC are debating the merits of near term stimulus” and the pound has responded in kind, dropping to its lowest level of the year against the US dollar and trading in the low $1.30s. While this shouldn’t come as a huge surprise given that there has been a couple of MPC dissenters calling for lower rates at the past two policy meetings, it is the strongest hint yet for a rate cut in the not too distant future.
GBPUSD has dropped to its lowest level of the year in recent trade, breaching the $1.3050 handle after comments from BOE Governor Carney. Source: xStation