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QE optimism lifts pound

STERLING hit a three-week high against the US dollar yesterday following comments from Paul Fisher, head of markets at the Bank of England, who said that quantitative easing (QE) was now working. <br /><br />&ldquo;I feel much more confident now that the asset purchase programme is having the scale and speed of impact that we would have hoped for when we started,&rdquo;&nbsp; Fisher said in an interview with the Financial Times.<br /><br />Sterling rose as high as $1.6134 in trading yesterday and it also gained against the euro to reach &pound;0.92.<br /><br />Duncan Higgins, analyst at Caxton FX said: &ldquo;Fisher&rsquo;s statement has lifted sterling off multi-month lows against both the euro and the dollar, as speculators revise their predictions for next month&rsquo;s QE decision.&rdquo;<br /><br />The market remains split as to whether the Bank will announce an extension to QE beyond the current &pound;175bn already authorised. <br />