GBP/USD up to 1.6430 after Carney Comments

The pound rose for a second day against the dollar before reports tomorrow that economists said will show industrial production expanded and the trade deficit narrowed, adding to signs the recovery is progressing.

Britain’s currency advanced for the first time in five days versus the euro as Bank of England Governor Mark Carney said in a speech in New York that U.K. economic news “has been positive.” The central bank kept its main interest rate at a record-low 0.5 percent last week to help foster a recovery. Britain’s government bonds declined.

“The U.K. data we are going to get this week will inform on the missing links in the U.K. recovery,” said Paul Robson, a currency strategist at Royal Bank of Scotland Group Plc in London. “The Bank of England is staying very quiet on tightening monetary conditions, which is ultimately a green light for people to push sterling higher, most notably against the dollar.”


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.