Pound Gains as Mark Carney Appointed as Next Head of BoE

The Great Britain pound pared yesterday’s losses versus the US dollar and the Japanese yen today after the announcement that Mark Carney, the current Bank of Canada’s Governor, will be the next head of Britain’s central bank.

The decision to appoint a foreigner as the head of England’s central bank surprised Forex market participants. The news was negative for Canada’s currency, but positive for Britain’s sterling. Experts think that it is good to invite such professional as Carney. Additionally, it is expected that the new governor will be less dovish.

The pound remained soft versus the euro after European finance ministers eased the bailout terms for Greece. The losses were limited as Greece’s exit from the eurozone is not ruled out and in fact remains very likely.

GBP/USD rose from 1.6024 to 1.6037 as of 6:00 GMT today, following yesterday’s drop from 1.6031 to 1.6024. GBP/JPY ticked up from 131.53 to 131.97. EUR/GBP traded at 0.8094 after it climbed from 0.8091 to 0.8111 earlier.

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