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BoE Minutes Hawkish - GBP/USD Respects 1.70

BoE Governor, Mark Carney

The Bank of England released its meeting minutes for the June 4-5 meeting. The vote to maintain rates was unanimous. Also, remember a week ago, Mark Carney said the bank might raise rates sooner than the market expected - that statement was a reiteration of what the BoE said in the minutes "the relatively low probability attached to a bank rate increase this year implied by some financial prices was somewhat surprising". Basically, the bank thinks investors and market watchers should anticipate the rate hike early 2015 and even late 2014.

This hawkish tone confirms the strength of last week's rally, and GBP/USD simply consolidated because the hawkish tone is not longer a surprise - gbpusd did not have enough to push through 1.70. The FOMC meeting later today will likely help GBP/USD find direction from its current consolidation between 1.6932 and 1.7010.