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12 Sep 2013
Flash: GBP/USD still trading near multi-month highs – Investec
FXstreet.com (Lisbon) - The much-hyped UK labor market figures yesterday did not fail to disappoint as we were treated to yet another upbeat data release and the GBP/USD soared to weekly highs, notes Jonathan Pryor, Corporate Treasurer at Investec.
Key quotes
“Yesterday’s report provided further evidence of the UK’s jobs recovery gaining momentum which will reinforce expectations that the unemployment rate will fall to the key 7% threshold more quickly than the Bank of England forecasts.”
“The buoyant release will likely fuel expectations that MPC will be forced into reassessing its stance on increases in the policy rate ahead of 2016 which is the earliest they are currently predicted by its forward guidance.”
“MPC member David Miles sought to temper expectations that the 7% threshold is within reach in a statement yesterday and also reiterating the BoE will not be looking to tighten policy as long as inflation remains under control. The GBP/USD has had a strong performance in recent weeks, rising to multi-month highs. Later today, Governor Mark Carney is due to testify to the Treasury select committee where he will face scrutiny that the Bank of England's policies are fueling a house price bubble.”
Key quotes
“Yesterday’s report provided further evidence of the UK’s jobs recovery gaining momentum which will reinforce expectations that the unemployment rate will fall to the key 7% threshold more quickly than the Bank of England forecasts.”
“The buoyant release will likely fuel expectations that MPC will be forced into reassessing its stance on increases in the policy rate ahead of 2016 which is the earliest they are currently predicted by its forward guidance.”
“MPC member David Miles sought to temper expectations that the 7% threshold is within reach in a statement yesterday and also reiterating the BoE will not be looking to tighten policy as long as inflation remains under control. The GBP/USD has had a strong performance in recent weeks, rising to multi-month highs. Later today, Governor Mark Carney is due to testify to the Treasury select committee where he will face scrutiny that the Bank of England's policies are fueling a house price bubble.”