Central bankers around the globe seem to agree that even though the worst seems past it is way too early to remove either monetary or fiscal stimulus. That is the message from BOE Governor King at his Mansion House speech. The decline in activity has slowed but the path to full recovery will be protracted he says, echoing many policy makers in Europe and in the US.

Cable is a shade lower in the wake of the comments but up on the afternoon as a wave of dollar selling hit the market this afternoon. It trades at 1.6417, down from 1.6445 a short while ago.

Reflation trades were reesttablished this afternoon as markets breathed a sigh of relief as Obama’s financial regulatory reform were seen as more evolutionary than some of his more revolutionary policy reforms. Stocks breathed a sigh of relief and rallied after the outline was unvieled.