FXStreet – The GBP/USD extended its BoE-induced downward spiral, and so was able to 1-week low in the vicinity of the 1,2850 are formed, while the President is Mark Carney, his press conference held.
The Pair came under new selling pressure, after the Carney the price pressure down played. He said that the current high Inflation was mainly due to the sharp decline in the Sterling and that the current monetary policy is appropriate.
• Current MPC monetary policy is appropriate – BoE Carney
Carney showed concerns about weak wage growth, which is due in part to the poor productivity, but there was also evidence that some firms increases the wage by the Brexit uncertainty, hesitant.
Carney’s comments made it clear that the economic slowdown in 1. Quarter of 2017, is not due predominantly to the Brexit.
Previously, the BoE’s MPC decided to with a 7:1, the interest votes on the record to keep low of 0.25% and the asset purchase program in the amount of 435 billion £ remained unchanged.
The dovish stance has led to some selling pressure against the GBP and the Pair built a majority of the gains of the last few weeks.
Next, the US economic data in focus, and this includes the weekly unemployment benefits, the PPI and some Fed Speeches.
Supports lie at 1.2835/30, 1,2800 and 1,2775/70. On the other hand, Resistances are located at 1.2900, 1,2950 and 1.30.
** FXStreet News Editorial, FXStreet**