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USCR Agrimonetary Updates |
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| USCR Agrimonetary Update 21st May 2004 |
Better economic data helps Sterling gain against €uro - USCR change unlikely
Better UK economic data showing mortgage lending rose at a record pace in April saw sterling rise against the €uro today. The April data bolstered the markets view that further interest rate moves in the short term are possible. Next week the release of important growth data on both sides of the Atlantic could have a significant effect on sterling, but at present it would appear unlikely that sterling would drop outside the current USCR threshold (£0.6641 - £0.6775).
Technically, the very short term trading range is now seen as £0.6650 to £0.6820, favouring if anything the chances of a USCR sugar price increase.
The ECB today fixed the commercial market value of the €uro at £0.6717, creating a negative monetary gap against the current artificial "USCR" (£0.6708) of 0.134%, well inside the +/-1% change threshold.
If this level is repeated at Thursday's reference point (27th May) there will be NO CHANGE to our UK sugar price from Monday 31st May 2004.
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