By: DailyForex.com
The Pound Sterling was under some pressure but remained close to the recently struck 7-week peak versus the US Dollar as FX traders await Mark Carney’s testimony at the Inflation Report hearings for an indication of the timing on the next Bank of England interest rate cut. Since July, when the pair hit a 30-year trough, the GBP/USD has appreciated more than 5%, largely due to unexpectedly upbeat data and a stabilizing political environment. Now, markets are anxious to see if the Bank of England has reconsidered its position regarding the imminence of a recession, which could take thoughts of a rate cut back off the table.
As reported at 10:30 am (BST) in London, the GBP/USD was trading at $1.3369, down 0.43%; the pair has ranged from a session low of $.13375 to a peak of $1.3440. The EUR/GBP was up 0.35% at 0.8410 Pence, not far from the session high of 0.8400 Pence.
BoE View to be Scrutinized
Currency strategists don’t believe that Mark Carney will close the door entirely at this point in time. While the data does currently suggest that there was some overreaction to the Brexit vote in late June the BoE certainly won’t want to put a limit to their options. Nonetheless, expectations of analysts and economists polled are calling for the BoE to maintain the status quo in the near future.