|
> |
USCR Agrimonetary Updates |
 |
|
| USCR Agrimonetary Update 30th March 2004 |
Sterling Steady in Range - awaits interest rate news
Sterling has traded a fairly narrow range against the €uro so far this week well within the current USCR no change band of £0.6775 and £0.6641. It is supported by the prospect of further UK interest rate rises, the first of which could be as early as next week. The prospect of the ECB cutting €uro interest rates at their meeting on Thursday is also supportive of sterling, however, from a technical viewpoint whilst most analysts still favour a range of £0.6600 to £0.6850, in the very short term support for the €uro at the £0.6660/55 level remains. If this holds true we should avoid a USCR change this week.
The ECB today fixed the commercial market value of the €uro at £0.6681, creating a positive monetary gap against the current artificial 'USCR' (£0.6708) of 0.403%, still 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.
|
|
