Financial Markets Review by Lloyds TSB

Better than feared UK manufacturing data and a report by the NIESR that gdp growth stabilised at -1.5% q/q in the 3-month period to March supported sterling against the euro.

Better than expected UK economic data support sterling

Better than feared UK manufacturing data and a report by the NIESR that gdp growth stabilised at -1.5% q/q in the 3-month period to March supported sterling against the euro.

Optimism over bank earnings and hopes that some parts of the US economy are stabilising bolstered demand for emerging market and higher yielding or commodity currencies.

A second emergency budget in 6 months in Ireland and comments by a member of the ECB governing council that euro zone interest rates could fall weighed on the euro.

The A$ shook off the 25bp interest rate cut by the RBA to 3.0% and strengthened against the dollar. In emergubg markets, the Mexican peso strengthened 3% against the dollar and $/rand fell below 9.0 to a 6-month low.

Full Report