Pound trades over $1.70 first time since Oct. 2008

|By:, SA News Editor

The central banks of the U.S. and U.K. are not quite on diverging paths, but the Bank of England is clearly the more hawkish at the moment, and cable continues to respondup 0.3% on the session to $1.7047.

Earlier this month BoE Governor Carney began prepping markets for a rate hike before the end of the year, while the Fed - not backing off its prediction of rate hikes to start mid-year 2015 - continues asset purchases and still frets about the labor market.

Cable was trading at less than $1.50 about a year ago when Mark Carney took over at the BoE amid market expectations of more dovish policy. They got that one wrong.