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- Mark Carney, BoE Governor
It seems that Friday was a good day to open long positions on the cable. Aggregate technical indicators are pointing at pair's further appreciation, while potential targets for the long traders can be found at 1.7014 and then only at 1.7117, meaning that a move above 2009 highs will clear the way for another 100-pip rally.
While the U.S. Dollar remained lower due to disappointing retail sales figures and jobless claims, the Pound benefited from Mark Carney's speech at the Annual Mansion House Dinner. The Governor was expected to provide another bold, but meaningless for markets speech. Nevertheless, the Governor offered a great surprise by saying that households, companies and investors should brace themselves for a sooner-than-expected increase in interest rates. It was his first hawkish comments since becoming the Governor of the Bank of England almost a year ago. Carney claimed that a widely-anticipated measure to cool the property market will definitely not become a substitute for a gradual increase in interest rates. Market participants are betting the central bank will increase its benchmark interest rate from a 320-year low of 0.5% during first months of 2015, February most preferably. And obviously, Carney's comments only added fuel to the fire, reinforcing these bets. Some of the economists even believe the first adjustment will be made late in 2014.