23 Jan 2014
Flash: Sterling flies as Carney benchmark comes into play - Investec
FXstreet.com (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec notes that GBP was a big mover yesterday as Carney’s forward guidance on unemployment comes close to hitting benchmark.
Key Quotes
"There were big moves in Sterling crosses yesterday as we learnt that the UK unemployment rate dropped to 7.1% from 7.4% last month. This was a major surprise, coming in well below the 7.3% market consensus, bringing the unemployment rate dangerously close to the milestone 7% rate that Governor Carney highlighted in his guidance a few months ago."
"This sent GBP/USD flying through 1.6500 and GBP/EUR following suit and trading higher through 1.2200. Our traders are now watching 1.6605 in Cable and 1.2242 in GBP/EUR as the next levels of resistance. We are trading very close to both levels this morning."
Key Quotes
"There were big moves in Sterling crosses yesterday as we learnt that the UK unemployment rate dropped to 7.1% from 7.4% last month. This was a major surprise, coming in well below the 7.3% market consensus, bringing the unemployment rate dangerously close to the milestone 7% rate that Governor Carney highlighted in his guidance a few months ago."
"This sent GBP/USD flying through 1.6500 and GBP/EUR following suit and trading higher through 1.2200. Our traders are now watching 1.6605 in Cable and 1.2242 in GBP/EUR as the next levels of resistance. We are trading very close to both levels this morning."