Financial Markets Review by Lloyds TSB

Sterling fell sharply on Friday following the much weaker than expected Q3 UK GDP data – GBP/USD tumbled by 1.7% to close at $1.6337

Pound tumbles on UK Q3 GDP shock

Sterling fell sharply on Friday following the much weaker than expected Q3 UK GDP data – GBP/USD tumbled by 1.7% to close at $1.6337

Gilts sold off but managed to recoup some losses after the ONS reported a shock 0.4% q/q contraction in UK Q3 GDP. 5y swaps reversed from a 3.43% high and closed the week at 3.30%.

Across emerging markets, the Chilean peso rose the most (3.3%) and the Colombian peso fall most (4.2%) against the USD

The Swedish krona was the strongest G-10 currency this week, rising 2.1% against the USD and 1.4% against the EUR.

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