|
> |
USCR Agrimonetary Updates |
 |
|
| USCR Agrimonetary Update 26th March 2004 |
Sterling Improves Again On Improved UK Current Account Deficit
Sterling moved back up against the €uro today after better expected current account deficit figures helped offset yesterday's comments by the Governor of the Bank of England. He was reported as saying that the prospect of more balanced growth was not helped by sterling's rise and that the strengthening pound was making life difficult for UK exporters. Analysts are still generally upbeat over the short term sterling prospects and technically, the moves of the last day or so have been expected. The near term trading range of £0.6600 and £0.6860 is still intact, with support and resistance levels largely as stated earlier in the week. Analysts would not be surprised to see short term movement towards the bottom of the range before another turn around and a drift higher to the range top.
The ECB today fixed the commercial market value of the €uro at £0.66985, creating a positive monetary gap against the current artificial 'USCR' (£0.6708) of 0.142%, well inside the +/-1% change threshold.
If this level is repeated at the next reference point (1st April) there will be NO CHANGE to our UK sugar price from Monday 5th April 2004.
|
|
