Pound takes a dip after dovish Carney comments

Published date: 09/01/2020
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Mark Carney the governor of the Bank of England has been speaking this morning and he has stated there is room to manoeuvre if needed to stimulate the markets.

In a pretty amazing revelation, he has stated that the main rate could move 250 basis points lower if needed and QE, forward guidance and rate cuts are all part of the toolbox for the BoE.

The BoE governor didn't stop with the bearish talk there as he also stated that UK growth is currently below its potential. Although this seems obvious as the UK has suffered from political woes recently. Lastly, he finished off by saying that any persistence weakness could require a prompt response. 

GBP sold off in a reaction to these comments and pushed 0.50% lower for the session. GBP/USD now trades at 1.3020 with the next main support level at 1.3011.


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