Mark Carney, the Bank of England governor (from Canada) has delivered an unusual “we can do it ” mannered speech at the Economic Club of New York. Used to the more placid tones of ex-governor King, we are not used to the head of the Bank of England telling us to stop being so pessimistic and look upon the economy as half full.
However he did throw in a couple of potentially bitter pills into the glass by stating that he was indeed worried that the housing market could enter “wrap speed” but said that he was happy with the state of it at the moment but that he would like to avoid this. The markets of course jumped on this as an indication that interest rates were likely to rise quicker than the markets had priced in so Sterling hit a two-year high against the Dollar at $1.64.
The Euro also made ground against the Dollar based o, new banking tie up between Germany and France, the FED delaying reducing its stimulus and Germany raising its growth forecast from 0.3% to 0.5% and from 1.5% to 1.7 for next year with a prediction of 2% over 2015.
In the US their jobless figures hit a 5 year low at 7% last month which buoyed the Dow by close to 200 points. This with slightly increase consumer spending had led the market to bet again when the FED will start to wind in its financial stimulus packages.
Gold rallied from its recent lows up 2.36% today to $1,264.40
