The Great Britain Pound gained strength against the greenback after Bank of England Governor Mark Carney said the time for rate increases is moving closer, in testimony to the Treasury Committee in Westminster.
Sterling was boosted after BoE Governor Carney said that the central bank was moving closer to hiking interest rates.
“The point at which interest rates may begin to rise is moving closer with the performance of the economy, consistent growth above trend, a firming in domestic costs, counter balanced somewhat by disinflation imported from abroad,” Carney said.
He reiterated that rate hikes when they do come will be gradual.
The remarks came after data earlier in the day showing that that U.K. consumer prices were flat in June, falling back towards the lowest rate on record.
The Office for National Statistics said the annual rate of consumer price inflation was flat last month, down from 0.1% in May. Analyst had expected a reading of 0.1%.
Intra-day bias remains bullish as 21 and 55 EMA crosses upward on the 1 hour time-frame which is also synchronized with the daily time-frame. We can also deduce that the pair has already formed a support at 1.5329 and more buying is expected to 1.5928 in the longer term. However am expecting further rise to 1.5720 in the medium term picture as SSRC oscillator signals bullish continuation on the 1 hour and 4 hours time-frame respectively.
Tomorrow investors would be taking a close look at the GBP Average Earnings Index 3m/y and Claimant Count Change.