It Took Carney One Second To Sink The Pound

Skerdian Meta•Tuesday, June 20, 2017•1 min read

Yesterday, our last Forex update was about Mark Carney´s speech, which was expected this morning, and the effect it would have on GBP pairs.

We knew there was a lot of interest in his comments after the BOE votes to hike interest rates jumped from 1 to 3. But, I was convinced that it would be more than naive to start hiking interest rates now, given the current economic and political situation in Britain.

Well, it took him only a few seconds to make it clear to the market that the BOE (Bank of England) is not starting to hike interest rates.

“Now is not yet the time to begin that adjustment” was the comment everyone was waiting for, and GBP/USD tumbled about 100 pips lower.

Now this forex pair is trading 100 pips lower

I said, in the last update yesterday, that it would be hard to get on this trade because chances were that GBP would move hundreds of pips in either direction in a blip, which it did.

Although, I´m looking to sell pullbacks on the 5-minute forex chart. Carney made it clear that the BOE remains dovish, so we remain short on GBP/USD as well.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.