GBP/USD tumbles as Carney points to easing from BoE

30 June 2016, 19:10
Mirza Baig
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GBP/USD dropped more than a hundred pips during the last hour as the pound tumbled across the board after comments from Mark Carney, the Governor of the Bank of England (BoE). He said that the economy outlook has deteriorated and some monetary policy easing from BoE likely to be required over the summer.

Cable was hovering above 1.3400 before the speech and currently is trading below 1.3250 as volatility in pound’s crosses soar. The pair printed a fresh low at 1.3244 and it has erased gains from the previous two days.

The renewed pressure on the pound, now amid monetary policy expectations, could drive the pair below 1.3200 and then attention would turn toward multi-decade lows that reached on Monday at 1.3115.

Carney moves markets

While the words of Mark Carney deteriorated the pound across the currency market, it boosted stocks in London and in Wall Street. The FTSE 100 printed fresh highs and is now up by 1.0% after starting the day with losses. In the US, main stock indexes are at day’s highs rising by 0.50%.

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