Mark Carney gave a bitter pill for everyone at this years annual Mansion House speech in the City of London by warning that interest rates could move quicker that the financial markets expected. Up until now the consensus was a rise in Spring 2015 however this comment has moved the favourite to November 2014. This had an immediate effect on Sterling as it breached the 1.70 to the USD for the first time since 2009, bolstered further as a safe haven as things escalate in the middle east.
The USD took a further bashing as the IMF cut its growth forecast for the US from 2.85 to 2% and urged the government to do more to support the economy such as raising the minimum wage and keeping interest rates low.
