- GBP/USD exchange rates lose 1 cent ahead of Carney’s speech
- Markets nervous over UK economy
- US housing prices up .7%
Mark Carney gives statement around UK economy
Mark Carney is due to give a speech before the House of Lords within the hour which has resulted in a significant fall in the Pound’s value. Sterling has extended its losses against most major currencies as Markets await an important update from the Bank of England.
Given the decline in the Pound’s value and the rise of consumer prices that are yet to follow, his speech could provide hawkish comments which could rattle markets and weaken the Pound further.
But Carney faces hefty criticism amongst some, questioning whether the BoE are responsible for dealing with the Brexit crisis and shrugging off blame amongst some MP’s such as Michael Gove.
Sterling continues to fall as we approach Carney’s speech at 15:30 BST and could extend its losses into the latter part of Tuesday.
US housing prices rose .7% in August
The Dollar found added support against Sterling following the housing price index release for August, providing moderate improvements YOY. This was offset slightly by lower consumer confidence hitting a 3-month low.
I am expecting further downturns for GBP/USD throughout the rest of the trading week with UK GDP estimates on Thursday to project further falls.
Further afield the US Dollar could be looking forward to further gains as we approach December, as the FED and markets gear up for an interest rate hike. Those looking to buy US Dollars should consider doing so sooner rather than later, as much less favorable exchange rates could present themselves unless Trump wins this years US elections.