Pound Drops After Carney’s Comments

The Great Britain pound tumbled today, reaching the lowest level since June 2010 against the US dollar, after the central bank’s chief signaled that the planned interest rate hike will likely be postponed.

Mark Carney, Governor of the Bank of England, said in an interview today that, while he is optimistic about the nation’s economy, there is no hurry for raising interest rates. Considering that prospects for a rate hike were the major supportive factor for the sterling, it is not a surprise to see the currency weakening. GBP/USD broke through the important psychological level of 1.48, meaning that a move further down is probable.

GBP/USD sank from 1.4884 to 1.4744 as of 14:40 GMT today. GBP/JPY tumbled from 180.51 to 178.93, trading near the lowest level since February.

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