18, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

Mervyn King's, the head of Bank of England, unplanned speech was published at the end of the week. Marvin King said that the Bank and the Ministry of Finance together have developed mechanisms to stimulate the economy (in particular, has hinted at a possible reduction in taxes), added that the UK recession was largely due to the difficulties in the euro area and will come soon to an end in the UK.

Overall performance of King's style is very similar to the performance of key speeches M. Draghi, which can not fail to put on an analogy. Especially when you consider that M. King bluntly called sterling oversold.