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USCR Agrimonetary Updates |
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| USCR Agrimonetary Update 27th May 2004 |
NO Sugar Price Change from Monday 31st May
Sterling has shown an improving trend throughout the week against the €uro moving from £0.6710 (USCR Sugar price INCREASE territory) to touch £0.6650 (close to USCR sugar price CUT level at £0.6641). Fundamentally, dealers and analysts still see the UK's interest rate advantage, a weaker US dollar and the UK's relative lack of susceptibility to the oil price move, favouring sterling with some expecting sterling to trade up to £0.6560 ($1.86) in the coming week(s).
Technically, analysts still rate the €uro as being vulnerable beneath £0.6705 and after this weeks moves there seems to be the possibility of this break eventually leading to £0.6610 and even £0.6590. However, in the very short term support lies at £0.6660 with further resistances at £0.6685 and £0.6705. It seems that only with a break back above £0.6710/15 are we likely to see a move back to the £0.6760 area.
The ECB today fixed the commercial market value of the EURuro at £0.6662, creating a positive monetary gap against the current artificial "USCR" (£0.6708) of 0.686%.
Consequently there will be no change in the USCR and therefore no resulting change to our sugar prices for at least the next 2 weeks.
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