GBP Hits One Week Low on Dovish Carney Comments

Sterling fell by almost a full cent against the dollar on Tuesday after Bank of England governor Mark Carney said now was not the time to raise interest rates, dashing some investors’ hopes that the central bank had shifted in that direction.

Speaking to London’s banking community alongside finance minister Philip Hammond a day after Brexit talks started, Carney cited weak wage growth, mixed signals on consumer spending and business investment as reasons for not moving to raise interest rates any time soon.

Sterling sank from $1.2758 to a one-week low of $1.2669 after the text of Carney’s postponed Mansion House speech was released. It also fell over half a percent to a five-day low of 88.02 pence per euro.

CNBC

Fed Talk Gives Dollar a Boost

EUR/USD – Euro Subdued as German Inflation, Eurozone Current Account Disappoint

Aussie Dollar: Central Banks in Focus

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.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.