• GBP/NZD edged higher as investors digested Bank of England Governor Andrew Bailey comments.
• Bank of England Governor Andrew Bailey emphasized the need for governments to strengthen fiscal credibility amid the ongoing global bond selloff to reassure investors
• Bank of England Governor Andrew Bailey said on Thursday that governments need to strengthen efforts to restore confidence in their public finances as global bond markets face pressure from high borrowing costs and inflation linked to the Iran war.
• Bank of England Governor Andrew Bailey said fiscal policies must remain credible to reassure investors and limit demands for higher borrowing returns.
• His comments come less than three weeks before Finance Minister John Healey’s first budget, which is expected to face tighter constraints from higher borrowing costs triggered by the Gulf conflict.
• Immediate resistance is located at 2.3660(23.6%fib), any close above will push the pair towards 2.3725(Higher BB).
• Immediate support is seen at 2.3508(38.2%fib) and break below could take the pair towards 2.3456(SMA 20).
Recommendation: Good to buy around 2.3600, with stop loss of 2.3480 and target price of 2.3750
