"For the first time in a long time it seems reasonable to expect the hopes and dreams of the holiday season to be fulfilled," says Bank of England Governor Mark Carney in a NY speech. "The Ghost of Christmas Present is a cheerful spirit. As uncertainty diminishes, credit conditions improve and balance sheet repair progresses, monetary policy is gaining traction."
Not buying the "secular stagnation" thesis of many, Carney says there's little reason to believe developed economies can't recover to past growth rates.
The pound continues to head higher, now up a whopping 16 handles since Carney took the BOE reins in July and has been unexpectedly hawkish since.
Cable is buying $1.6406 at the moment. Above $1.70 would take it back to summer-2008 levels.