BoE's Carney anticipates modest tightening over time
In a data light schedule, comments from BoE governor Carney have carried a little weight in lifting GBP off its lows, though does come alongside a broader pullback in the USD which also see EUR/USD eyeing a return to 1.1300. Cable is looking at a modest recovery to 1.2900+, though price action is very tight at the moment.
As for comments from the MPC head, Carney maintains that it is in everyone's interest to find a Brexit solution, but it is his view that modest tightening will be required over time on order to achieve inflation targets. This is on the proviso that expansion continues, but no mention has been made of the Q4 data which was released yesterday.
Instead, the governor has spoken of the effect of the trade tensions trickling through all major economies, as well as the slowdown in China and that the global economy is in a 'delicate equilibrium'. Carney and the MPC seem to believe that economic global growth is more likely than not, to stabilise though recognizes that others believe global expansion may be coming to an end.
All in all, it is a pretty neutral statement, so there is little to materially impact GBP as a result, with EUR/GBP net unchanged on the day as it pivots on the 0.8770 level.
Focus returns to Brexit, with the PM facing a barrage of questions, and criticism in the House of Commons at the present time. As it stands, the PM has called off a meaningful for this week but will table a motion by the end of the month.