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Carney's Speech Drags Down British Pound

Today Pound weakened against US Dollar even after the upbeat U.K. manufacturing data because of the comments of BOE governor Mark Carney on UK economic outlook. According to the Office for National Statistics, the manufacturing production rose .4% in January above the economist’s expectation for a .3% gain. YOY reading of manufacturing production rose 3.3% from the reading of 1.4% in December. However industrial output increased by .1% in January missing the economists expectation of .2% rise in January. 

A separate report from Parliament on UK Inflation hearing where Mark Carney said that the amount of spare capacity in the economy is slightly more than 1.5% of gross domestic product, which conclude that BOE ( Bank of England) will hold off from raising interest rates for longer. Also carney agreed with the comments from Deputy Governor Charlie Bean on Monday that rates were unlikely to exceed 2.5% over the next three years. A slightly Dovish tone of Carney dragged down the pair lower.

On the hourly chart we can see that the pair found support at 1.6592 from which it might move up. The pair is currently trading sideways.