Fresh lows on the day for the struggling pound
Mark Carney seemed to back away from his upbeat stance as he warned about increasing global trade risks in a speech in Bournemouth. The comment send the pound 25 pips lower to 1.2601 — the worst level since June 18.
The four-hour chart shows how cable is eating into the mid-June gains as it bleeds away support.
There isn’t much standing between it and a return to the lows. The fall today takes it below the 61.8% retracement of the June rally. On the USD side, the market is increasingly concerned that the Fed won’t cut as deeply as what’s priced into the market.