- The point at which interest rates start to rise is getting closer
No surprise to see the pound up on that comment but it’s not as inflammatory as it seems as the rest of his comments are from the same old script
- No pre-set course for rates, timing depends on data
- Judgement about when to raise rates has become more finely balanced in recent months
- Rate rises likely to be limited and gradual due to weak export demand and high public and private debt
GBP/USD back up through 1.6300 to 1.6330 and the area of resistance earlier on this morning. There’s nothing much here for hawks to grab onto but it might be a reminder to pound traders that the Scottish vote is long gone history and we’re back to trading the fundamentals.
Keep an eye on EUR/GBP which is knocking on that strong support again. If that goes then it will help kick cable higher.
