EUR/GBP in highs on Carney

FXstreet.com (Ediinburgh) -The EUR/GBP climbed to the vicinity of 0.8740 after Governor M.Carney linked rates with a 7.0% unemployment rate.

EUR/GBP extends the upside

The central bank also revised up its economic growth forecasts: 1.5% in 2013 and 2.7% in 2014, both up from 1.2% and 1.5%, respectively. The BoE will keep the current rate levels until the unemployment rate hit 7.0%, this being a threshold and not a trigger for a rate hike. Carney also inferred that consumer prices would remain around 2.9% in the near-term.

EUR/GBP key levels

As of writing the cross is up 0.41% at 0.8706 with the next resistance at 0.8681 (high Aug.7) followed by 0.8695 (high Aug.5) and then 0.8745 (high Aug.2). On the downside, a breach of 0.8627 (MA30d) would target 0.8619 (low Aug.6) en route to 0.8606 (low Jul.26).

Flash: Carney forthcoming - BTMU

Research teams at The Bank of Tokyo-Mitsubishi UFJ, Ltd said “The key focus today will be the release of the BoE’s Quarterly Inflation Report alongside which the government requested the BoE to assess the merits of forward rate guidance.
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