Pound Falls Off A Cliff

The pound has fallen to multi-month lows today as the realisation sinks in the the extent of Britain's QE programme means that interest rates will inevitably stay low for some considerable time.

Germany says it is no longer in recession and it's got the figures to prove it. The euro was boosted by a strong reading of German business sentiment with the Ifo Business Climate Survey improving for a fifth month, and by more than had been expected.

France also recently said that it had pulled out of recession in the April-to-June period.

The positive news from the Continent is fostering a belief that interest rates will begin to rise there before too long, certainly way before the UK where the BoE is still busily printing money.

The pound plumbed to EUR1.1360, it's lowest levels against the euro since June 5th, and a five week low of $1.6162 versus the dollar.

That should help British grain exports become a bit more competitive, but it won't do much to help get the price of soya down in the UK.