FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the British Pound plummeted to 1.5052 against the greenback, following the UK inflation report hearings.
Key Quotes:
“The BOE’s Governor, Mark Carney, and a couple of MPC members testified on inflation and the economic outlook before the Parliament’s Treasury Committee, painting a dark future for a rate hike case during the first half of 2016.”
“First was chief economist Haldane, who said that that the downside inflation risk is worse than the one reported in the latest inflation report. Then, Carney stated that rates e likely to remain low “for some time.” Sentiment towards the GBP turned negative and the pair stands near its lows, barely bouncing in the short term, rather on oversold conditions than an actual change in market’s sentiment.”
“In the 4 hours chart, the technical picture is quite bearish still, as the 20 SMA has turned sharply lower above the current level, whilst the technical indicators are bouncing some from extreme oversold levels. Nevertheless, and as long as the price remains below 1.5110, the immediate short term resistance, the pair is set to decline down to 1.5010, with further declines below the psychological 1.5000 figure opening doors for a downward move towards 1.4850.”
(Market News Provided by FXstreet)