{"id":58204,"date":"2014-08-18T07:27:45","date_gmt":"2014-08-18T11:27:45","guid":{"rendered":"http:\/\/countingpips.com\/?p=58204"},"modified":"2014-08-19T13:17:30","modified_gmt":"2014-08-19T17:17:30","slug":"sterling-holds-support-on-hawkish-carney-comments","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/08\/sterling-holds-support-on-hawkish-carney-comments\/","title":{"rendered":"Sterling Holds Support on Hawkish Carney Comments"},"content":{"rendered":"
August 18, 2014<\/div>
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Article by ForexTime<\/a><\/p>\n

The GBP\/USD is higher on BoE\u2019s Carney remarks, which has allowed sterling to recover above 1.6700. Governor Carney said that the U.K. recovery is more than half way through and that he would not wait to see real wages turn positive before hiking interest rates. News, meanwhile, that the Rightmove house price index came in below expectations in August, which is the latest sign that the housing market is slowing following a surge over the last year, didn\u2019t have much impact.<\/p>\n

Governor sounded hawkish in weekend remarks made in an interview with the Sunday Times, saying \u201cwe don\u2019t have to wait\u201d for real wages to turn positive before hiking interest rates, though he also said that \u201cwe have to have the confidence that prospective real wages are going to be growing sustainably\u201d. He also said that there are \u201cbig pockets\u201d of households \u201cwho will be very sensitive to interest-rate increases when they begin, so it makes sense to be gradual.\u201d He said that banks have made \u201csubstantial progress\u201d in returning to normal. Regarding the recovery he said, \u201cthe expansion is proceeding, momentum is more assured,\u201d and \u201cthe very fact we have had consistent quarters of growth in line with, or slightly better than, our forecasts shows that\u201d. \u201cWherever the finish line was in the depths of the crisis, we are much more than halfway toward that finish line now.\u201d<\/p>\n

Also on Monday, the U.K.\u2019s Rightmove house price index came in below expectations at -2.9% m\/m, which is the latest sign that the housing market is slowing following a surge over the last year. The decline in mortgage approvals over the last six months has portended the drop off in house prices that we are now seeing. This reflects the rising odds of a BoE interest rate hike, high property prices, and the impact of the Mortgage Market Review in April, which has pushed up mortgage lending rates. The BoE also used new powers to cap on loan-to-income ratios in June.<\/p>\n

\"gbp-081814\"<\/a><\/p>\n

The GBP\/USD for the momentum has held support near the 200-day moving average at 1.666.\u00a0 Resistance has also held near the 10-day moving average at 1.6770.\u00a0 The RSI (relative strength index) which is a momentum oscillator that measures overbought and oversold levels, has turned positive and is printing near 32, after coming from oversold levels near 25.\u00a0 Momentum as reflected by the MACD (moving average convergence divergence) index is still negative.<\/p>\n

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Article by ForexTime The GBP\/USD is higher on BoE\u2019s Carney remarks, which has allowed sterling to recover above 1.6700. Governor Carney said that the U.K. recovery is more than half way through and that he would not wait to see real wages turn positive before hiking interest rates. News, meanwhile, that the Rightmove house price […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-58204","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/58204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=58204"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/58204\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=58204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=58204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=58204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}