The British pound rapidly strengthens
13.06.2014
On Friday the GBP/USD pair is trading with an increase and updating the May price peaks - and this is not the limit of the optimism.
The positions of the British pound confidently strengthened on Friday, and it has significant reasons for this. The market was set on a wave of optimistic by the Bank of England Governor Mark Carney, who today gave investors a new focus for interpreting the monetary policy.
According to him, the British central bank is ready to raise interest rates sooner than the market expected because a very rapid strengthening of the economic system, which supports the labour market, allows to start to tightening monetary conditions.
This is the same signal, which the fans of the British pound have been waiting for, and previously published statistics were very confident. Now the world's banks and economists will revise their expectations relative to the time of the rate increase based on new facts.
Do recall that the Bank of England interest rate is 0.5% per annum, a record low cost for market borrowings, and held at this level for almost five years. Expectations suggest that the BoE may raise the rate in January-February 2015, and it is quite a realistic forecast.
The aim of the GBP/USD upward movement is at around 1.70, but the first wave of optimism in the British pound failed to reach this level.
RoboForex Analytical Department
The positions of the British pound confidently strengthened on Friday, and it has significant reasons for this. The market was set on a wave of optimistic by the Bank of England Governor Mark Carney, who today gave investors a new focus for interpreting the monetary policy.
According to him, the British central bank is ready to raise interest rates sooner than the market expected because a very rapid strengthening of the economic system, which supports the labour market, allows to start to tightening monetary conditions.
This is the same signal, which the fans of the British pound have been waiting for, and previously published statistics were very confident. Now the world's banks and economists will revise their expectations relative to the time of the rate increase based on new facts.
Do recall that the Bank of England interest rate is 0.5% per annum, a record low cost for market borrowings, and held at this level for almost five years. Expectations suggest that the BoE may raise the rate in January-February 2015, and it is quite a realistic forecast.
The aim of the GBP/USD upward movement is at around 1.70, but the first wave of optimism in the British pound failed to reach this level.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.