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Capital Economics says sterling's rally against the dollar, up 3.86% since mid-December, is not justified by interest rate differentials or Brexit developments. The firm attributes much of the move to broad dollar weakness, with the dollar index down 2% in January alone.
It expects the pound to retrace some gains if the Federal Reserve speeds up rate hikes in 2018.
If sterling reverses as forecast, dollar-priced feed imports become cheaper for UK buyers in local currency terms, but the link to grain and feed prices is weak.
poundsterlinglive.comGary HowesFeb 1, 2018Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
