The pound drifted higher against its major rivals in European deals on Friday, after the Bank of England governor Mark Carney told that the next move in interest rates would be an increase and not a cut, even as the U.K. is experiencing record low inflation.

“We’re still in a position where our message is… that the next move in interest rates is going to be up,” Carney said during a panel discussion at a Bundesbank conference in Frankfurt.

In a speech at Imperial College Business School in London, the BoE deputy governor Ben Broadbent said that low inflation in the UK is likely to be temporary, and it “is positive, not negative, for demand and output.”

“Base effects will naturally give a big positive impetus to annual inflation in early 2016,” he said.

European markets advanced, after Germany’s import prices declined at a slower-than-expected pace in February, and optimism emerged that conflict in Yemen would have little effect on oil supplies even as concerns remained about the situation.

In economic front, U.K. house price growth softened for the seventh consecutive month in March, data from the Nationwide Building Society showed.

House prices advanced 5.1 percent year-on-year in March, slower than February’s 5.7 percent increase. The annual growth was also slower than a 5.3 percent rise forecast by economists.

The pound ended Thursday’s trading on a mixed note. Although upbeat retail sales data gave some support to the pound-dollar pair, that was short lived and it declined at the end of Thursday’s trading.

The pound appreciated to 1.4913 against the greenback, up by 0.8 percent from an early weekly low of 1.4796. The next possible resistance for the pound-greenback pair may be located around the 1.50 zone.

The pound added 0.8 percent to hit a 3-day high of 1.4403 against the franc, compared to 1.4294 hit at Thursday’s New York session close. If the pound-franc pair extends rise, 1.46 is likely seen as its next resistance level.

The pound spiked up to a 4-day high of 0.7265 against the euro, a 0.8 percent rise from yesterday’s closing value of 0.7326. On the upside, the pound may find resistance around the 0.72 mark.

The pound advanced to a 2-day high of 177.92 against the Japanese yen, following a decline to 176.69 at 5:30 am ET. Continuation of the pound’s uptrend may lead it to a resistance surrounding the 180.00 area.

Looking ahead, U.S. final fourth quarter GDP data and Reuters/University of Michigan’s final consumer sentiment index for March are due in the New York session.

At 3:35 pm ET, U.S. Federal Reserve Chair Janet Yellen is expected to speak about monetary policy at the Federal Reserve Bank Conference titled “The New Normal for Monetary Policy” at San Fransisco.

The material has been provided by InstaForex Company –