In last night's speech the BOE gov tried to distance himself and the MPC from the Fed indecision
Adam reported the comments here which said that the BOE will not necessarily wait for the Fed before the hiking of interest rates
Carney. speaking in a seminar at the annual meeting of the IMF, said:
"The exact timing of the Fed move is not decisive for the timing of the move by the Bank of England,"
"We will take our responsibilities. We will determine the timing for the start of the process of monetary policy normalization"
The general consensus of the market has been that the BOE will not hike before the Fed does so this change of perception has given the pound some good underpinning since the post-MPC Minutes slide
I'm not sure how much of Carney's rhetoric is real intent compared to a bit of stage strutting and I remain a rally seller on cable in principle, but we have to respect market sentiment, however lemming-like it may be, so caution is advised at this point
GBPUSD is holding onto its gains at 1.5370 but with more offers at 1.5380 and into 1.5400-10 so let's see if we can stage a serious attempt on those once Europe gets underway
EURGBP has bids/support around 0.7330. Currently 0.7340 so this pair, as usual, may have its own impact on matters.
But versus the commodity currencies it's not such a bullish picture with GBPCAD down to 1.9919 and GBPAUD 2.1085
All will be revealed as the session unfolds
Carney - Trying to be his own man but can he really afford to do so ?
