Sterling soars to month high after King speech

Sterling has leapt to a month high against the euro and dollar after hints from Mervyn King dismissing an increase in QE in November.

The pound rose by a cent against the euro to trade at €1.1065 and over two cents against the dollar to $1.6543 following the governor of the Bank of England's speech to Scottish business organisations last night. Mark O'Sullivan, director of dealing at foreign exchange firm, Currencies Direct says: "Sterling rallied across the board in early morning trading, albeit from extremely oversold conditions. He warns against throwing "caution to the wind", however. "With the November inflation report still to come, we can't safely say we have seen the last of any increase in the QE program...