US equity futures have legged lower this morning as Cable tumbles folowing remarks from Bank of England governor Carney that they "haven't modeled for a disorderly Brexit." It appears the omniscience of central bankers is very briefly in question....
Dow Futures legged 40 points lower as Cable broke below 1.29...
And as Citi notes, GBPUSD is not looking great - we're now testing immediate support at 1.2865, and we are down almost 65 pips since the BoE initial announcement. Meanwhile EURGBP is edging higher, and GBPJPY is so much lower it might actually be causing a small squeeze in JPY elsewhere.
BoE Governor Carney has been the nail in the coffin for GBP hawks today. There has been little reference to the positive scenarios which would support removing accommodation sooner, and given that there was only one hawk calling for a rate hike (who is leaving in June), there's not many positives from Super Thursday thus far. In fact, Carney has just said that BoE stimulus isn't excessive, it's appropriate.
And 10Y TSY yields reversed their initial spike...
It also appears Carney's comments that BOE Stimulus Isn't Excessive, It's Appropriate, have sparked a new round of dovish chatter.