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Forex - Pound broadly higher after Carney comments

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Investing.com -

Investing.com - The pound moved higher against the dollar and the euro on Monday after Bank of England Governor Mark Carney said interest rates could have to rise before wage growth picks up.

GBP/USD was up 0.21% to 1.6721 from 1.6691 late Friday.

Cable was likely to find support at around the 1.6675 level and resistance at 1.68.

Sterling strengthened after Carney said in a newspaper interview on Sunday that the bank did not have to wait for wage growth to recover before raising interest rates.

The pound fell to four month lows against the dollar last week after the BoE cut its forecast for salary growth and said the rate of pay growth would be a key factor in determining the timing of the next change in interest rates.

The central bank was to publish the minutes of its August policy meeting on Wednesday, with investors on the lookout for any indication that the bank is moving closer to hiking borrowing costs.

The pound was also higher against the euro, with EUR/GBP down 0.33% to 0.8002 from 0.8026 late Friday.

Elsewhere Monday, the euro edged lower against the dollar, with EUR/USD slipping 0.10% to 1.3386.

Investors remained wary as heightened tensions over the conflict in Ukraine continued to weigh on market sentiment.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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