Pound Plunges As UK Economy Slumps

The pound is down heavily this morning, which will negate much of the benefit that might have been derived from sharply lower CBOT prices, when shippers come to price up their domestic price-lists later today.

Figures from the British Chambers of Commerce and the National Institute for Economic and Social Research show that the UK economy shrunk the most in at least twenty years during the fourth quarter, and that home sales dropped to the lowest since the measure began in 1978.

“The situation is dire, and the Monetary Policy Committee is running out of bullets,” said David Frost in an interview.

With interest rates at just 1% and falling, he's not wrong there. The pound was worth $1.4690 against the dollar in early trade, down heavily from the dizzy heights of $1.53 just a few days ago.