Sterling surges to 3-week high, FTSE falls on Carney rate hike signal

Reuters/Jemima Kelly, Kit Rees, John Geddie & David Milliken/06-28-17

Sterling surged to a three-week high and Britain’s main FTSE 100 stock index fell on Wednesday, after Bank of England Governor Mark Carney said the Bank was likely to need to raise interest rates and would debate this “in the coming months”.

The pound jumped a cent to $1.2943 after the speech’s release, its strongest since June 9, the day of the results of Britain’s parliamentary elections. That left sterling up around 1 percent on the day.

PG View: Carney jumps on the normalization bandwagon.

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