The British pound finished yesterday\u2019s trading day with a broad sell-off across the board after Bank of England Governor Carney delivered some unexpected remarks in a speech yesterday. The currency recovered some ground during the Asian session.<\/p>\n
At a conference in London, BoE\u2019s Carney said that the central bank was ready to make imminent changes to the monetary policy given the recent weakness in the UK economy.<\/p>\n
Markets have interpreted those comments as a rising possibility of a rate cut and started selling the pound across the board.<\/p>\n
Carney also added that \u201c… a reasonable judgement is that the combined conventional and unconventional policy space is in the neighborhood of the 250 basis points cut to Bank Rate seen in pre-crisis easing cycles.\u201d Quantitative easing, rate cuts, and forward guidance remain all parts of the central bank\u2019s tools.<\/p>\n
Looser monetary policy had been expected in 2020, but the Conservative election win and the fact that Brexit will be delivered in January 2020 eased loosening bets to some extent.<\/p>\n
According to Mizuho Bank in London, comments made by Carney wasn\u2019t the only reason for the sterling sell-off. Earlier this week, EC President Ursula von der Leyen said that it would be \u201cimpossible\u201d for the UK to strike a trade deal with the EU in the next 11 months.<\/p>\n
From Norway, markets await the CPI index for December, which is expected to slightly weaken to 1.5% from the previous month\u2019s 1.6% year-over-year.<\/p>\n
Energy prices continue to slide following the easing tensions in the Middle East with Brent crude down 0.20% for the day.<\/p>\n
From a technical standpoint, the pair continued to trade inside a range with the 11.65 level acting as a mid-term resistance level to the upside.<\/p>\n
The pound managed to recover some ground after the sell-off and traded at 11.6280 against the Norwegian krone, as of 7:00 a.m. London time.<\/p>\n
The British pound finished yesterday\u2019s trading day with a broad sell-off across the board after Bank of England Governor Carney delivered some unexpected remarks in a speech yesterday. The currency recovered some ground during the Asian session. At a conference in London, BoE\u2019s Carney said that the central bank was ready to make imminent changes […]<\/p>\n","protected":false},"author":163946598,"featured_media":47374,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1379,1726],"tags":[1530,1706,1993,1386,2080,1394,1489,1537,1728],"class_list":{"0":"post-84805","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gbp","8":"category-nok","9":"tag-bank-of-england","10":"tag-boc","11":"tag-brent-crude","12":"tag-brexit","13":"tag-cpi-index","14":"tag-gbp","15":"tag-geopolitical-tensions","16":"tag-middle-east","17":"tag-nok"},"acf":[],"yoast_head":"\n