BoE's Bailey: We have to watch inflation very carefully

Eren Sengezer FXStreet

Bank of England (BoE) Governor Andrew Bailey reiterated on Monday that he doesn't want to be dismissive about inflation concerns and added they see it as a story about an economy that is recovering, as reported by Reuters.

Additional takeaways

"Data on employment show corner has been turned."

"There's every reason to be reasonably confident on the labour market."

"We will find it easier to deal with debt if we have higher rate of growth."

"We have to watch inflation very carefully."

Market reaction

The GBP/USD pair continues to trade flat on the day around mid-1.4100s after these remarks.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD revisits 1.1780, or daily lows

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to reach daily troughs on Thursday. The pair’s decline comes in response to a sudden bout of USD strength amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD makes a U-turn, challenges 1.3500

GBP/USD rapidly leaves behind Wednesday’s strong advance, putting the 1.3500 support to the test on Thursday. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold sticks to the bid bias, flirts with $5,200

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The precious metal adds to Wednesday’s optimism despite the Greenback trades in a firm fashion, although geopolitical tensions in the Middle East keep the yellow metal bid for now.