Carney speaks in Parliament today

Mark Carney, New Governor of the Bank of England, will speak in British Parliament today to explain how monetary policy could improve the economy of the country.

To some degree this is the reason that we have seen GBP fall from its recent peaks. Mr Carney will effectively be seeking to convince his stakeholders that sustained low interest rates are the way forward.

Whilst fundamental economic theory implies that this should weaken GBP there is also substantial market support for the Governors strategy. As such the market believes low interest rates are a route to economic recovery which in turn will make the pound more attractive again.

Aside from this comparatively, routine news, the UK parliament's vote on Military action against Syria looms. Putting aside the moral implications of war, how would this affect GBP and the global currencies?

Typically war equals a flight to ‘safe haven’ currencies - this would see USD and JPY appreciate. However, depending on how Iran views any military action against Syria, the price of Oil could be impacted and this would have the opposite effect for Currencies whose industries are heavily oil (particularly imported oil) reliant.