Cable undermined by Carney's parting gift -...>

FOREX: Cable undermined by Carney's parting gift

- After a relatively sanguine start to the European session, GBP/USD slipped

through the $1.3050 in the first real price action of the day following a speech

from BoE Governor Carney titled "A Framework for All Seasons?". In the speech,

Carney talked up the ample downside policy space available to the MPC, judging

that the Bank have the equivalent of 250bps of policy space with which to combat

any downturn. Carney added that the MPC could give a "prompt response" to any

lasting signs of economic weakness, adding to the bid in UK fixed income and the

downturn in GBP.

- USD trades well, with US equities also on the front foot. E-mini S&P futures

hit fresh record levels overnight, with any further strength likely dependent on

the earnings season ahead, with bulge bracket banks all due next week.

- US weekly jobless claims and Canadian building permits/housing starts data are

the calendar highlights. Speeches are due from BoC's Poloz and a number of Fed

and ECB representatives including ECB's Weidman and Schnabel and Fed's Clarida,

Evans and Bullard.