GBP/USD Tumbles to New Lows After Dovish Comments from Mark Carney

Focus on 5-pound noteThe GBP/USD currency pair today tumbled to new lows last witnessed in April due to dovish comments from Bank of England Governor, Mark Carney. The currency pair hit the new lows during the North American session after hawkish comments from FOMC members such as Eric Rosengren.

The currency pair hit a low of 1.2610 during the early North American session; a figure that was last recorded on April 18 this year.

Mark Carney’s Mansion House speech early in the European session triggered the selling pressure on the currency pair as he stated that the time was not right for a rate hike. He attributed this to the mixed reports recorded recently regarding consumer spending in the UK. Carney also said that Brexit would really test the UK’s economy given that Brexit talks kicked-off yesterday.

The greenback rallied higher today after hawkish comments from Eric Rosengren, President of the  Federal Reserve Bank of Boston, who stated that the Federal Reserve should continue hiking rates in order to increase its capacity to handle future recessions. The US Dollar Index, which tracks the greenback’s performance, was trading higher than its opening price of 97.54 attesting to the US dollar’s strength.

The President of the Dallas Fed, Robert Kaplan, is set to speak later today in San Fransisco. Kaplan has largely been dovish, hence, any hawkish comments from him are likely to drive the pair lower.

The GBP/USD  currency pair was trading at 1.2620 as at 15:01 GMT having dropped from a high of 1.2757 earlier today. The GBP/JPY was trading at 140.91 having declined from a high of 142.52 earlier in today’s session.

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