Financial Markets Review by Lloyds TSB

The yen was the worst performing major currency this week, on fresh signs that the pace of the global recession may be slackening.

Yen falls as equities extend rally

The yen was the worst performing major currency this week, on fresh signs that the pace of the global recession may be slackening.

The Mexican peso was under strong selling pressure this week after news that a potential swine flu pandemic had its origins in Mexico.

The pound rallied this week on better than expected UK economic data, suggesting the pace of economic contraction may be easing in Q2.

Thin markets were blamed for the sharp drop in gilt yields on Friday, but this did not change the generally supportive tone throughout the week and good demand for sovereign paper at UK and US auctions.

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