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Bank Of England's Mervyn King Says He Is Not Talking Sterling Down

During the early part of the US session yesterday Sterling was bid in FX space, reversing recent declines. Mervyn King current Governor of the Bank of England had a pre-recorded, exclusive interview with ITV News (British News Channel) however the price action indicates that this could have been leaked. King said that the recovery is finally “in sight,” only a short time after he changed his stance and voted for further quantitative easing. In the interview he said that if you remove construction and North Sea Oil from the calculation, then the economy would have grown by 1.5%. King only holds the post of Governor for 3 more months, when current Bank of Canada Mark Carney takes the helm. Some analysts and even MPC welcome the weaker pound as it is hoped that this would increase exports, and help kick-start the economy. However the UK’s biggest trade partners the United States and Europe, are also struggling, importing less. Sterling has continued its strength throughout the Asian session against the Dollar and is now trading with a 1.51 handle, from a low early in the week of 1.48.

Headlines

FTSE 100 closed at its highest level since 2007

King Says BOE Isn’t Trying to Lower Pound - Bloomberg

Prime Minister Shinzo Abe plans to announce on Friday Japan's intention to join negotiations for an ambitious trans-Pacific free-trade pact - Wall Street Journal

Bank of England Governor Mervyn King said tonight that he has discussed with the Chancellor of the Exchequer George Osborne and Prime Minister David Cameron things the government could do to boost economic growth - MNI

In a further blow to the beleaguered economy, Greece is set to lay off more than 5,000 civil servants before the end of 2014.              

Chancellor George Osborne told to take on Business zombies - Cityam (Exclusive)             

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