BOE gov Carney still testifying 25 Oct
On the subject of exchange rates now. Stand by for news bombs but repetition so far.
- there have been quite substantial move in exchange rate
- BOE MPC will consider effect as a committee
- not all scenarios allow mon pol to be as accommodative after referendum
- GBP move reflects market perception of potential relation btwn UK-EU
- MPC needs to consider how persistent move in GBP will be
- doesn't think GBP move since Conservative Party conf is driven by perceived shift in BOE policy stance
GBPUSD back up to 1.2140 with EURGBP down below 0.8950 as Carney appears to allay a few concerns.
- notes greater perceived chance of Fed hiking rates in Dec and that has contributed to USD strength
Yes Mr C well observed. Give the man a fish.
