UK: Sterling is firmer - BBH

Research Team at BBH, notes that the Sterling is firmer but has thus far been unable to build on yesterday's recovery. 

Key Quotes

“Sterling had fallen to almost $1.2080 after Chancellor of the Exchequer Hammond indicated no encroachment on BOE's independence, and that a request for more QE would not be rejected. Carney did not add much new in his testimony before the House of Lords yesterday.  Acknowledging that the central bank does not have a target for sterling (but not being indifferent to it) is boilerplate central bank mantra.  His aversion to negative interest rates is also well appreciated. 

By not extending yesterday's gains, sterling is extending its streak to five sessions that it has not risen above the previous day’s high.  Yesterday's high was near $1.2245, and Monday's was $1.2250.  A break of this area may prompt a move toward $1.2300. A push through $1.2330 would be more meaningful from a technical point of view.”