Financial Markets Review by Lloyds TSB

Sterling faced considerable selling pressure this week following Bank of England Governor Mervyn King’s testimony to the Treasury Select Committee on Tuesday.

King’s comments weigh on sterling while equities continue to climb

Sterling faced considerable selling pressure this week following Bank of England Governor Mervyn King’s testimony to the Treasury Select Committee on Tuesday.

Sterling faced considerable selling pressure this week following Bank of England Governor Mervyn King’s testimony to the Treasury Select Committee on Tuesday.

The Scandinavian currencies were the star performers this week with SEK and NOK the top two gainers versus the dollar, buoyed by the continued rally in commodity markets.

In emerging markets, there was outperformance from the Czech koruna, Polish zloty and the Hungarian forint versus the euro and the US dollar.

Government bond yields bounced off the summer lows this week as participants reacted to stronger US economic data and investors moved into equities and corporate bonds.

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