Preview – Carney’s speech post-Financial Stability Report


Overview

The Bank of England (BOE) Governor Mark Carney is likely to cross the wires at 1000 GMT, speaking at a press conference after the release of the central bank's Financial Stability Report (FSR) and Financial Policy Committee (FPC) record from its July meeting at 09:30 GMT.

Markets are not expecting BOE Chief to shed any light on the monetary policy outlook, as he nay make some comments on financial system risks and possibly macroprudential policies, in light of the FSR. However, Carney could highlight the risks to the UK and global economic outlook amid ongoing trade war and falling inflationary pressures.

The BOE rate-setting Monetary Policy Committee (MPC) decided to hold the Bank rate unchanged at 0.75% in June. In its forward guidance, the MPC  mentioned, “downside risks to growth have increased” both in the UK and in the rest of the world.

How will it impact GBP/USD?

FXStreet’s Analyst, Haresh Menghani notes, “From a technical perspective, any subsequent recovery is likely to confront some fresh supply near the 1.2565-70 region, above which the momentum might get extended, though runs the risk of fizzling out rather quickly near the 1.2600 handle amid persistent fears of a no-deal Brexit.”

“On the flip side, the 1.2500 handle, closely followed by the 1.2480 horizontal zone now seems to protect the immediate downside, which if broken might turn the pair vulnerable to break through the recent swing lows support near the 1.2440 region and head towards challenging yearly lows, around the 1.2400-1.2395 area,” Haresh adds.

About BOE Governor Carney

Mark Carney is Governor of the Bank of England and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Authority. His appointment as Governor was approved by Her Majesty the Queen on 26 November 2012. The Governor joined the Bank on 1 July 2013.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD retreats after strong NFP, weak German data

EUR/USD is trading below   1.11 after US Non-Farm Payrolls beat expectations with 266K and mixed wage growth. Earlier, weak German data weighed on the euro. Updates on trade are awaited.

EUR/USD News

GBP/USD shrugs off strong NFP, focuses on UK elections

GBP/USD is trading below 1.3150 but off the post-NFP lows. The US gained more jobs than expected. The Conservatives remain in the lead ahead of the debate between PM Johnson and Labour leader Corbyn.

GBP/USD News

US recession? Not so fast, a calm look at the economy and currencies ahead of the NFP

Recent US economic indicators have been downbeat, but they include silver linings and are backed by robust consumption. Valeria Bednarik, Joseph Trevisani, and Yohay Elam...

Read more

Gold drops to fresh multi-day lows on upbeat NFP report

Gold faded an intraday bullish spike to the $1480 area and tumbled to fresh multi-day lows, around the $1465 region in reaction to upbeat US monthly jobs report.

Gold News

USD/JPY: bearish ahead of US employment figures

Japanese data missed the market’s expectations, triggering fresh concerns about the economy. Focus on US employment figures, market players anticipate dismal numbers. USD/JPY is technically bearish could break below the 108.00 level.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures