GBP/USD Drops to 1.6975 on Less Hawkish BOE

Sterling nursed losses early on Wednesday after comments from the Bank of England governor cooled expectations for an interest rate hike this year, while the G3 currencies remained stuck in well-worn ranges following yet another non-committal session.

Surprisingly less hawkish comments from BoE Governor Mark Carney saw the pound dip to a near one-week low of $1.6966, pulling away from a 5-1/2 year peak of $1.7064 set last Wednesday.

Carney said Britain’s economy still has plenty of slack to work through and that financial markets underestimate how much uncertainty there is in the economy.  The impression he left was a dovish one and rather hard to reconcile with his abrupt and hawkish change of policy signalling at a speech earlier this month, JPMorgan analysts said.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.