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British Pound Extends Gains Following Carney’s Upbeat Speech

July 11, 2019 at 11:16 by Simon Mugo

A mix of British pound notesThe Sterling pound today rallied higher against the US dollar following Mark Carney‘s speech at a press conference following the release of the UK’s financial stability report for July. The GBP/USD currency pair rallied higher driven by the greenback’s overall weakness as markets continue to price-in future rate cuts by the US Federal Reserve.

The GP/USD currency pair today rallied from an opening low of 1.2506 to a high of 1.2564 during Carney’s speech and was trading near these highs at the time of writing.

The currency pair opened today’s session with a bullish bias given yesterday’s upbeat UK GDP growth data released by the Office for National Statistics. The pair’s rally was further accelerated by the weak greenback as tracked by the US Dollar Index, which hit a low of 96.85. The release of the latest UK financial stability report by the Bank of England also contributed to the pair’s rally. The report clarified that UK banks could survive a no-deal Brexit as well as a protracted trade war, but there would be economic shocks from these events.

The pair kept rallying as Mark Carney answered questions from reporters during his press conference. Carney promised that the BoE would do more to tackle climate change issues but refused to confirm whether he was interested in becoming the next IMF chief. He also commented on Facebook’s Libra crypto project.

The currency pair’s short-term performance is likely to be affected by the release of the US CPI data at 12:30 GMT.

The GBP/USD currency pair was trading at 1.2564 as at 11:14 GMT having rallied from a low of 1.2506. The GBP/JPY currency pair was trading at 135.83 having risen from a low of 135.12.

If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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