The market started to prepare for the summer holidays. The quite economic calendar is not able to create volatility. Sterling was the most volatile currency yesterday, which crushed following BoE Carney’s dovish statements.
Sterling Crushed as Carney is not Convinced from Economy’s Improvement
Sterling was hit hardly by the BoE Governor Mark Carney’s comments and ended Tuesday’s and early Wednesday’s trading sessions, significantly lower against most of the majors. Carney remains concerned for the economy’s strength and consequences of Brexit, contrary to the three policymakers that surprised with their votes for an immediate rate hike last week. The BoE leader believes that more time is needed to see whether the wages and then, consumption recovers. Moreover, the U.K. is trying to face political uncertainty which has a direct impact on the economy and the currency. Tomorrow, the market expects Conservative and DUP party to announce a deal which may relief slightly the negative impact weigh on the currency.
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