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EUR/GBP consolidates at 6-week highs after impressive rally

FXStreet (Córdoba) - The EUR/GBP staged an impressive rally Wednesday as the pound underperformed in the wake of soft UK employment data and the BoE Quarterly Inflation Report.

The EUR/GBP gained more than 100 pips throughout the day, as a dovish Carney crashed the pound and sent the pair above 0.8000 toward its highest level in 6 weeks. The pair peaked at 0.8020 before pulling back slightly and it is currently trading at 0.8010, up 0.74% on the day.

BoE has no pre-set course

At a briefing following the QIR release, BoE Governor Carney declined to specify the timing of the first rate hike, signaling only that "bank rates need to rise as the economy normalizes" and once they do the process will be gradual and limited. He said rates may remain below average beyond the usual forecast horizon and highlighted the BoE has no pre-set course, path of rates will depend on expansion and inflation outlook.

Carney also talked down the sterling, saying the strong currency is weighing on export growth.

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