Commodity markets tend to be quite local and electricity is more local than most as the opportunity to move it out of countries is limited by the size of the interconnectors. So news today of the $ falling and strength being seen in the £ is likely to pass many electricity and gas traders.

However, they should be aware that many LNG contracts come from the US and so this has just made LNG cheaper (assuming that many will be taking $ risk). All coal and oil products are being traded in $ and so again this raw commodity has become cheaper, this has pushed gas and emissions as relatively speaking more expensive. It could be argued that the end result will have little effect but in reality it should cheapen Summer and at worst leave the Winters at similar levels.

It will be interesting to see how the LNG and oil markets react and whether the power and gas markets will follow suit.