5 Feb 2014
Flash: GBP has been under pressure since Carney dovish speech - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec notes that GBP has remained under pressure since Carney’s dovish speech at the end of January.
Key Quotes
"Sterling remains as sluggish as the journey into the office this morning despite yesterday’s reading by the volatile UK PMI construction number. The strong reading, much to the market’s surprise, initially helped Sterling rally by half a cent but this was short lived as it failed to keep a hold of its gains, returning back to 1.6300 in the afternoon session.”
“Dissecting the number further, it seems the housing construction component aided by the Governments help to buy scheme was a cause of the high figure, which will not allay fears of a housing bubble forming."
“Sterling has been under pressure since Carney’s dovish speech at the end of January which perhaps was the precursor to a change in sentiment so today's print will be of great significance to Sterling’s short term fortunes as a weak outturn would heap further pressure on Sterling, prompting a move towards the 1.6260 support level."
Key Quotes
"Sterling remains as sluggish as the journey into the office this morning despite yesterday’s reading by the volatile UK PMI construction number. The strong reading, much to the market’s surprise, initially helped Sterling rally by half a cent but this was short lived as it failed to keep a hold of its gains, returning back to 1.6300 in the afternoon session.”
“Dissecting the number further, it seems the housing construction component aided by the Governments help to buy scheme was a cause of the high figure, which will not allay fears of a housing bubble forming."
“Sterling has been under pressure since Carney’s dovish speech at the end of January which perhaps was the precursor to a change in sentiment so today's print will be of great significance to Sterling’s short term fortunes as a weak outturn would heap further pressure on Sterling, prompting a move towards the 1.6260 support level."