boe

It’s been a pretty lack lustre week post Brexit as every economist and analyst under the sun crunch the numbers and give us their predictions for Europe and the UK. When it all boils down to it who really cares…. I want to know what the Central bank governor has to say as he controls monetary policy!

Carney on queue delivers the good signalling potential rate cuts just around the corner

  • Bank of England Governor Mark Carney said he saw the need for more stimulus
  • Carney said that the BoE would probably need to pump more stimulus into Britain’s economy over the summer after the shock of last week’s decision by voters to leave the European Union.
  • “In my view, and I am not prejudging the views of the other independent MPC members, the economic outlook has deteriorated and some monetary policy easing will likely be required over the summer,” he said in a speech on Thursday.
  • “In August, we will also discuss further the range of instruments at our disposal,” Carney said.

And to finish off:

  • Carney also said he would not consider resigning from the Bank if his critics from the referendum’s Leave campaign, who were angered by his warnings of a Brexit hit to Britain’s economy, end up filling a power vacuum in the government.

So there you have it. Who cares what anyone else thinks…I’ll be cutting rates and giving the Old Pound a good old shake up.

Look for long term levels and start preparing to hold the positions for the next month or two at least.

Selling Rallies back towards 1.3566 looks a pretty good trade although will we see that bounce?? Maybe not.

So look to potentially jump in with a bit more risk selling through the low following Brexit around 1.3118 or even under 1.3000 if you’re looking for absolute certainty the move is on the way.

Be patient and wait for your levels!

Brad


 

The risk of loss in Forex trading can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in the light of your financial condition. The high degree of leverage that is often obtainable in Forex trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains. Past performance is not indicative of future results.

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