The pound's 'Carney bounce' is slipping
The pound is down slightly against the dollar on Tuesday morning, struggling to maintain the high it reached on Monday night after Mark Carney confirmed he is staying at the Bank of England.
The Governor's announcement that he will remain at the central bank until 2019, ending speculation about his possible exit, sent the pound spiking higher against the dollar.
But the rally is dwindling slightly in the cold light of day. Here is how the pound/dollar pairing looks at around 7.15 a.m. GMT (3.15 a.m. ET):
Sterling is also dipping slightly against the euro at the same time. Here is how that looks:
Kathleen Brooks, Research Director at City Index, says in here morning markets email on Tuesday: "The pound had a sharp move higher at the end of trading on Monday as Mark Carney, Governor of the Bank of England said that he would extend his tenure at the Bank of England until June 2019.
"While this is considered a welcome sign of stability in exceptionally uncertain times, one has to ask why he is so reluctant to stay on until 2021, when the term officially ends? An extra year is good, however, the uncertainty caused by Brexit makes it very difficult to anticipate the health of the UK economy in three years' time.
"Thus, even after today's announcement, Carney may still leave the Bank of England at a delicate time for the UK economy, as the government tries to navigate a smooth exit from the EU."