Why hasn't GBP dropped more after Carney saying BoE interest rates likely to drop?

After Bank of England Governor, Mark Carney said on Thursday that UK interest rates will likely be cut in coming months, the pound dropped in value immediately.

But it seems to have bounced back to the levels similar to before that statement was released (GBP/USD was about 1.34 before the BoE statement and it’s 1.33 now).

I would have thought the drop would have been more drastic. Have the markets really priced the impending interest rate cut into the current GBP rate?

If not, why? and when is that likely to happen?

Thanks.

markets can factor in news much faster than you think…and indeed markets anticipate news and the pice is therefore already in the mix …

thats why its better to trade what you see and not bet on what you [B][U]anticipate[/U][/B] happening
:cool:
N

Its also less likely that the Fed will raise rates, certainly 2 hikes this year is off the table.

The drop actually took place week before the news was going to be released so you could have seen a nice return if you could have got in then.

I am confused which way to go on the cable because the dollar is so strong but the stats coming out of the U.K at the minute are better than expected i.e post brexit so think the market is going to keep ranging .

one scenario could be the boe actually raise interest rates to strengthen the pound as post brexit fears subside.