European markets have entered into the fray and the initial move is to sell the Dollar. The resignation overnight of James Purnell, another member of the cabinet of the UK’s ruling Labour party and his calls for Prime Minister Brown to resign hit Sterling hard overnight with Cable hitting 1.6050. As Gerry mentioned yesterday the political risk is seen as quite low here in the UK, but viewed from afar it certainly merits attention. Eur/Usd has grinded higher to 1.4200 with offers seen above at 1.4230 and 1.4250. Bids are seen below at 1.4130 and then 1.4070. Cable levels obviously are seen a bit wider with 1.6200 capping rallies for now with support at 1.6050 and 1.6000.