Financial Markets Review by Lloyds TSB

The minutes of the latest FOMC and BoE interest rate meetings both suggested further asset purchases were possible in the future, putting upward pressure on bond yields.

The minutes of the latest FOMC and BoE interest rate meetings both suggested further asset purchases were possible in the future, putting upward pressure on bond yields.

The US dollar came under strong selling pressure this week after concerns about the credit standing of the US intensified.

€/$ rallied through 1.40 on Friday for the first time since January, while £/$ edged ever closer to 1.60.

A resounding victory for the Congress party in the Indian elections saw the rupee strengthen through 47 against the US$ for the first time in 2009.

S&P changed its UK ratings outlook to negative on concerns about rising public debt levels.

Full Report