“The current policy of near-zero interest rates will need to end. Hopefully we will not wait until the costs are as high as when King Midas turned his daughter into gold.” Forbes said while the U.K. recovery still faces challenges, it’s “self sustaining” and the economy is likely to grow at an above-trend pace. “Gradual increases in interest rates, if they occur in a timely fashion, should not derail the U.K. recovery, but instead support and strengthen it,” she said.
Despite optimistic view, Sterling was pushed lower after her speech was published and is currently being traded few points above 1.5430 level. Pair is likely to find support around 1.5380 and resistance above 1.5480 handle during today's session. Later today, markets will be focused on Janet Yellen's testimony and CB Consumer Confidence figures.
