A Quick Look Around

Posted by Nogger - a legend in his own mind at 11:20 | Categorized as

04/05/11 -- The pound is down to a 13-month low against a resurgent euro this morning, falling below 1.11 at one point for the first time since late March 2010.

The euro meanwhile is closing in on 1.49 against the dollar, a level not seen since December 2009.

Both the ECB and the BOE are due to announce decisions on interest rates tomorrow. Neither are strongly fancied to raise rates now, but the ECB's accompanying statement may hint at an increase before too long.

Poor UK housing and construction data this morning added to sterling's weakness, pushing it down against even a very limp US dollar.

Meanwhile metals are all lower as are many other commodities, with London sugar slipping below USD600/tonne for the first time since November.

London wheat is mixed with old crop July up GBP1.25/tonne and new crop Nov down GBP2.00/tonne. The strong euro has all the Paris grains under the cosh, with rapeseed again the ginger-haired stepson down EUR5.25-7.25/tonne.

I get an uneasy feel. A bit like helping your arthritic gran undo her bra. Except without the smell of mint imperials and cat wee.