Well this morning’s papers are full of stories of parity for sterling and euro with the blueprint been taken from a bureau de change close to the Eurostar terminal giving rates of €1.03 to the pound. None of the articles I have read have any quotes from anybody remotely serious agreeing with this analysis and as I’m fond of saying if nobody on the internet agrees with what you’re saying then how far from the pack have you strayed?

The alarmist headlines were triggered by yet further strengthening of the euro against sterling to yet another record low. As we have stated over the past week or so we believe that regardless of data we can foresee falls lower in the short term with a retracement higher in 2009.

The risk atmosphere was helped and hurt yesterday in equal measure. The automaker bailout plan has progressed through the House of Representatives but wrangling in the Senate will more than likely hold up President Bush’s signature.

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