The pound extended its early rally against the yen and the dollar in New York deals on Wednesday, after the Bank of England governor Mark Carney told that the UK economic momentum is solid, and the monetary policy committee will have to “feel its way as it goes on interest rates.”
“The prospect of sustained momentum in the U.K. economy and the gradual firming of underlying inflationary pressure will likely put the decision as to when to start the process of gradual monetary policy normalization into sharper relief around the turn of this year,” Carney told to the parliament’s treasury committee.
The pound firmed to 1.5613 against the greenback for the first time since August 26, while climbing to a 6-day high of 186.92 against the Japanese yen. This may be compared to early lows of pound of 1.5331 against the greenback and 184.24 against the yen. The pound is likely to find resistance around 1.57 against the greenback and 188.00 against the yen.
The material has been provided by InstaForex Company – www.instaforex.com