Pound Dives On Hung Parliament Fears

Just got back from a nice long weekend away with no TV to find the pound on the receiving end of another thrashing this morning.

What the hell went on over the weekend to sink the pound below 1.50 against the dollar then, I wonder? We haven't been that low since last May, and we are now also down to our lowest levels of 2010 against the euro.

It seems that a Sunday Times poll pegging the Tories lead over Labour at just two points is to blame, increasing the likelihood of a hung parliament at the next election.

Concerns that forex traders are switching from the euro to sterling as the new whipping boy in their search for a fast buck appear to be coming to fruition.

The Wall Street Journal says that a French and German-backed deal to bailout Greece with EUR30 billion is close to being agreed.

That leaves the pound languishing at around 1.10 against the euro, despite all the pressure that the single currency has been under since the turn of the year, and around 1.4890 against the dollar.

At least that's revived the fortunes of London wheat, with March currently up GBP2.75 at GBP97.75/tonne.