British Pound trending points
- British pound has been eyeing the BoE governor Carney testimony amidst Brexit worries
- BoE Governor Carney testimony could reinforce a hawkish dive, as a Brexit propping statement is anticipated
- Aussies down along with ASX 200, Asia Pacific stocks fall followed by a failed APEC summit
- NZD holding up higher, fueled by yield rose despite firmer demand
Market has been eyeing the BoE governor Mark Carney Testimony before a parliamentary treasury committee and MPs will be cross-examining Carney alongside a group of BoE top executives including deputy governor Jon Cuniliffe, the issues regarding latest quarterly inflation report. They might also press the BoE to prop the Brexit deal advocated by PM Theresa May for the sake of a salubrious GBP and UK economy.
Crucially, the latest Quarterly Inflation Report has something to kindle a hawkish spirit inside GBP, whipping it to reach higher before the EU’s urgent summit due on November 25thand GBP high volatility is likely. Indubitably, Mr. Carney and the BoE will be explaining how a “no-deal Brexit” could suffocate both UK and EU economy, raising risks of a bearish grill for GBP and EUR. Before the Brexit deal comes up in to vote next month, BoE comment reinforcing a Brexit deal and PM May’s meeting with EU officials, could certainly galvanize a bullish bias into the wind for GBP. In the flipside, GBP may suffer, if policymakers walk back from showing off earlier optimism.
GBP/USD daily chart
When this report is being written, GBP is holding on swiftly above 1.2830, buckling down a softened USD and EURO has fallen short, as it has been traded slightly above 0.8880 region, flicked in to a bearish bias. The sentiment driven Aussies are stumbling, alongside ASX 200 and Asian stocks, as the recent APEC summit had failed to reach an agreement in the first time in its history. The NZD is jolted upward, as the yield rose despite firmer demands.
Amidst Brexit tensions, GBP might endure a hawkish high-tide move, as BoE officials are expected to prod Brexit deal, as suggested by PM Theresa May. Dramatic market volatilities are expected in the upcoming weeks and GBP is expected to bounce back, while its major support level still resides at 1.2625 and the key resistance is reigning over 1.3145 region. AUD might fall further along with Asian stocks, as poor market sentiments are whiplashing further.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]