Forex: GBP/USD soars as Carney testimony starts

GBP/USD has soared closed to a point as in coming BoE Governor Carney is delivering his testimony to the Treasury Select Committee this morning.

He has told the group that the bank must exit unconventional policy and protect the integrity of the Pound. He added that the bar to changing monetary policy framework must be very high and central banks should be flexible on targeting inflation. Further, he believes that the BoE must enhance forecasting. The market reaction has seen Cable soar on talk that an end to easing will be targeted and spot is now currently trading at 1.5731, just below the hourly 200 MA, having made a high at 1.5767. RSI has spiked high and climbed to 76.

Feb 7, 2013

Forex: EUR/GBP dampens on Carney's hawkish statement

Incoming BoE Governor Carney is testifying before UK lawmakers and has said that the central bank must exit unconventional policy. Investors are interpreting those words as pretty hawkish for the British Pound, sending it on a rally. As consequence, the EUR/GBP is falling sharply, by around 60 pips from 0.8660 to test the 0.8600 psychological level.

7. Forex Flash: Bunds remain consolidated in 142.18/95 range – RBS

According to Technical Markets Strategist Dymtro Bondar at RBS, “The view on Bunds remains the same, as the price consolidated within the 142.18 – 142-95 range after testing the 142.95 resistance, being the 50% retracement from the July 2012 impulse wave on a continuation chart, closing the 142.50 bearish gap from 28 January 2013.”