This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Cable could remain below $1.60
With Mark Carney set to release and then discuss the latest inflation report for the UK, GBP/USD trading might be slightly stifled as traders wait to hear what he has to say.
Once again it is likely that we will get an opportunity to watch Mr Carney’s fancy footwork as he tries to dance around the specifics. Currency traders will be desperate to grab every nuance of change, while the BoE will be desperate not to set expectations for an interest rate increase timeline.
We will also see the latest unemployment figures for the UK too, but the significance of this has been diminished with the BoE instead considering the average earnings a more accurate barometer.
Unless Mark Carney lets slip a timeline it is likely we will see the US dollar continue to dominate the pound, and GBP/USD below the $1.60 level could be maintained.