British Pound at Risk as BOE Governor Carney Remains Dovish
- British Pound may fall as BOE’s Carney maintains dovish posture
- Anti-risk Yen down as Japan’s Nikkei 225 stock index trades higher
- NZ Dollar rebounds as markets rebalance before RBNZ meeting
All eyes will be on Bank of England Governor Mark Carney in European trading hours as he delivers a much-anticipated speech at the Mansion House in London. The appearance will give the BOE chief an opportunity to opine after minutes from last week’s policy meeting revealed that 3 out of 5 voters on the rate-setting MPC committee now favor a hike.
For his part, Carney has argued that Brexit-related uncertainty calls for retaining an accommodative posture while the recent inflationary upswell is temporary and ought to fade by itself. A similarly dovish and reasonably convincing performance this time around may weigh on the British Pound as traders reckon that the governor will be able to sway most of the committee to his side of the argument.
The Yen underperformed as Japan’s benchmark Nikkei 225 stock index traded higher, sapping demand for the perennially anti-risk currency. The New Zealand Dollar corrected higher having fallen alongside most major currencies against its resurgent US counterpart in the preceding session. The Kiwi’s standout recovery may have reflected traders’ reluctance to commit ahead of upcoming RBNZ rate decision.
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** All times listed in GMT. See the full DailyFX economic calendar here.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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