Pound Down, Dollar Up

The pound is lower this morning after Labour's poor showing in the Euro elections over the weekend. Following hot on the heels of a dismal performance in the local elections last Thursday.

With a series of high profile resignations and calls for him to resign gathering momentum, Gordon McBroon faces another week of pressure, if he can last that long.

All this uncertainty is prompting wide scale selling of the pound.

Meanwhile, the dollar is firmer, with traders betting that the Fed will raise interest rates sometime in the second half of 2009 as the US economy recovers. US payrolls in May fell by the smallest for eight months figures last week revealed. It sums the market up that, whilst not increasing, a slow down in the rate of fall is seen as bullish.