GBP/USD: BoE can’t be expected to nullify Brexit hit: Mark Carney


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP rose 0.27% against the USD and closed at 1.3434, after Brexit officials confirmed that “considerable progress” is finally being made in the fourth round of Brexit negotiations.

Yesterday, the Bank of England (BoE) Governor, Mark Carney, indicated that the central bank has limited tools to mitigate economic damage caused by Brexit, although it could influence how that hit is spread across Britain. He further added that the BoE will continue to assess and express its independent assessment of the risks associated with Brexit.

In the Asian session, at GMT0300, the pair is trading at 1.3411, with the GBP trading 0.17% lower against the USD from yesterday’s close.

Overnight data showed that the nation’s GfK consumer confidence index unexpectedly climbed to a four-month high level of -9.0 in September, confounding market consensus for a drop to a level of -11.0. In the prior month, the index had registered a level of -10.0.

The pair is expected to find support at 1.3351, and a fall through could take it to the next support level of 1.3291. The pair is expected to find its first resistance at 1.3463, and a rise through could take it to the next resistance level of 1.3515.

Ahead in the day, market participants will focus on UK’s final 2Q GDP as well as net consumer credit and mortgage approvals data, both for August.

The currency pair is trading below its 20 Hr moving average and showing convergence with its 50 Hr moving average.

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