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BOE’s King: Have yet to see bulk of QE impact come through

By   || February 23, 2010 at 10:12 GMT
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  • Don’t know whether will have to return to more QE to avoid return to recession
  • Stand ready to expand or contract monetary policy as situation demands
  • Expansion in bank lending only likely to occur after balance sheets further consolidated

Well sterling has taken it on the chin. Cable at 1.5430 off a cent on day, off nearly one and a half from session high.  GBP/EUR is up at .8830 from early .8775.

King’s comments have been pretty downbeat, dovish in tone, and there has certainly been  more emphasis on possiblity of further QE than the sterling bulls would have liked.  Is there anything startingly new or surprising, not really. 

Would expect decent buy interest to be lining up down in the 1.5350/80 area. Next technical support area 1.5395/05.

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