Flash: GBP/USD expected to continue downward path – BMO Capital Markets

FXstreet.com (New York) - We can’t see how the value of the GBP/USD will sustain itself at new lows after Mark Carney’s prepared remarks today, suggests Greg Anderson at BMO Capital Markets.

Key quotes

“Given no such surprises were embedded within the remarks earlier today, we look for broad GBP/USD price action to mimic that of the August Inflation Report session: a kneejerk move lower followed by a moderate rally.”

“At the same time, we would expect the GBP/USD to end the day broadly lower, as the central message from the BoE kept the financial markets at large orientated to the low rates (weak GBP) guidance.”