9 Jul 2014
Central bank imbalance responsible for pound strength - FXStreet
FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik points out that GBP/USD, following last week's jump to a multiyear high at 1.7179, is currently among the strongest currencies across the board.
Key quotes
"So far retracements had been shy of 100 pips from 1.7179."
"The main reason beyond such strength is the Central Bank imbalance: with rates at record lows and facility programs amongst major economies, the fact that the UK is doing pretty well fuels speculation the kingdom will be the first to move rates up."
"Not to mention, BOE’s governor Carney shocked markets a couple weeks ago stating that a rate hike may come sooner than what markets expect. Later he recanted of the bold statement, but the damage was done."
Key quotes
"So far retracements had been shy of 100 pips from 1.7179."
"The main reason beyond such strength is the Central Bank imbalance: with rates at record lows and facility programs amongst major economies, the fact that the UK is doing pretty well fuels speculation the kingdom will be the first to move rates up."
"Not to mention, BOE’s governor Carney shocked markets a couple weeks ago stating that a rate hike may come sooner than what markets expect. Later he recanted of the bold statement, but the damage was done."