Dollar slips broadly after Fannie Mae results

Reuters: [2008-05-06 13:58:00]

LONDON, May 6 (Reuters) - The dollar extended earlier falls versus a basket of six major currencies and the euro on Tuesday after results from Fannie Mae <FNM.N>, the largest provider of U.S. home financing, came in weaker than expected.

Fanny Mae reported its third straight quarterly loss as the U.S. housing crisis took another turn for the worse during the first quarter of 2008 [ID:nWNAS1965].

"There's some uncertainty creeping back into the market after the dollar's rally last week," said Henry Wilkes, head of forex trading at Brown Brothers Harriman.

"(The Fannie Mae results) helps to remind us that...we're not out of the woods yet," he added.

The euro jumped to trade up 0.3 percent on the day at $1.5541 <EUR=>, while the dollar index <.DXY> fell a quarter percent to 73.009. The dollar also dropped 0.3 percent to 104.53 yen <JPY=>.

(Reporting by Naomi Tajitsu and Veronica Brown)

((RM:veronica.brown.reuters.com@reuters.net; Tel: +44 207 542 6745))

Keywords: MARKETS FOREX/DOLLAR

Sterling falls, gilts up after softer UK services PMI

Reuters: [2008-05-06 10:42:00]

LONDON, May 6 (Reuters) - Sterling extended losses on Tuesday, while UK rate futures rallied after service sector data came in weaker than expected, in a further indication of the tussle between a slowing UK economy and rising inflation.

The Chartered Institute for Purchasing and Supply/NTC purchasing managers' index fell to 50.4 from 52.1 in March, the lowest reading since March 2003 and below analysts' forecasts <ECONGB> for a reading of 51.6.

Confidence in the sector fell to its lowest since the aftermath of the attacks on the United States in 2001, with fears intensifying about the impact of the credit crunch on the economy beyond the hard-hit financial sector.

The pound fell roughly half a cent to $1.9653 <GBP=>, while the euro rallied to 78.76 pence, up almost a third of a percent on the day <EURGBP=>.

The June long gilt future <FLGM8> extended gains to stand 46 ticks higher on the day, having been 35 ticks higher beforehand.

Short sterling interest rate futures rallied to stand as much as eight ticks higher in back-month contracts.

Britain's FTSE 100 <.FTSE> was little changed after the data, down 11.4 points, or 0.2 percent at 6,204.1.

"The UK data was definately worse than expected," said Simon Derrick, head of currency research at Bank of New York Mellon.

"It only cements the idea that we are in a slowdown in the UK economy. We're above the boom-bust level of 50, but we're getting close to the contraction level." (Reporting by London Markets Team)

((RM:veronica.brown.reuters.com@reuters.net; Tel: +44 207 542 6745))

Keywords: MARKETS FOREX/STERLING

Euro Libor up, spreads widen slightly; no dlr, stg fix

Reuters: [2008-05-05 13:11:00]

    LONDON, May 5 (Reuters) - The interbank cost of borrowing 
three-month euros edged up on Monday and spreads over secured 
lending widened a touch, with recent central moves to increase 
the availability of dollar liquidity doing little to ease euro 
funding strains. 
    There were no fixings of London interbank offered rates 
(Libor) for dollar or sterling funds from the British Bankers 
Association on Monday owing to the UK public holiday. 
    All other European markets are open, however, meaning the 
contributors to euro Libor fixings were active. Markets will 
have to wait until Tuesday to get the latest sterling and dollar 
Libor rates and spreads. 
    Three-month euro Libor is its highest since mid-December. 
    On Friday the U.S. Federal Reserve said it would increase 
the size of cash auctions to banks and widen one of its lending 
programs to big bond-trading firms, while the European Central 
Bank and Swiss National Bank said they will boost the 
availability of dollar funds to European banks. 
    Below is a table of the BBA's latest daily fixing of Libor 
for euro funds in percentage terms. The changes from the 
previous session are in parenthesis. 
    EURO                STERLING            DOLLAR   
O/N 4.08000 (-0.00250)  -------             ------- 
1WK 4.27000 (+0.00437)  -------             ------- 
2WK 4.30375 (+0.00375)  -------             ------- 
1MO 4.38563 (-0.00062)  -------             ------- 
2M0 4.68000 (-0.00438)  -------             ------- 
3MO 4.85750 (+0.00125)  -------             ------- 
6MO 4.88000 (-0.00313)  -------             ------- 
1YR 4.95688 (+0.00438)  -------             ------- 
 
3MTH LIBOR/OIS SPREAD (BPs)     
    82.45000 (+0.12500)   -----              ----- 
    For RICs to the above rates, go to <0#LIBORSUPERRICS>. 
    ((Reporting by Jamie McGeever; Reuters Messaging: 
jamie.mcgeever.reuters.com@reuters.net; +44 207 542 8510)) 
 
  Keywords: MARKETS LIBOR  
    

Sterling hits session lows on weak housing data

Reuters: [2008-05-02 09:08:00]

LONDON, May 2 (Reuters) - Sterling hit session lows against the dollar and the euro on Friday after another housing survey showed the first annual fall in property prices in around a decade, boosting expectations for interest rate cuts.

The Halifax house price survey showed prices in the three months to April falling 0.9 percent versus a year ago. Consensus forecast was for a 0.8 percent fall.

"The survey reflects the weakening tone we've seen in other housing data and continued downside risks for sterling," said Geraldine Concagh, economist at AIB Group Treasury in Dublin.

"The expectation is that this will filter through to consumer spending and reinforces the view that the BoE will cut interest rates again but they will remain cautious in the way they do it," she added.

Sterling fell to a session low of $1.9724, down around 40 ticks from pre-data levels <GBP=>, before paring losses. The euro rose as high as 78.38 pence <EURGBP=>.

(Reporting by Veronica Brown and Toni Vorobyova)

((antonina.vorobyova@reuters.com; Tel: +44207 542 7958, Reuters Messaging: antonina.vorobyova.reuters.com@reuters.net))

Keywords: MARKETS STERLING

Sterling extends gains after UK manufacturing data

Reuters: [2008-05-01 10:44:00]

LONDON, May 1 (Reuters) - Sterling extended gains against the euro and dollar on Thursday while stocks were little changed after data showing Britain's manufacturing sector had slowed but prices soared, with no let up in inflationary presures.

The Chartered Institute of Purchasing and Supply/NTC purchasing managers' index slipped to 51.0 in April from 51.3 in March. Although marginally above the consensus forecast of 50.8, it was the weakest reading since January and the second weakest in the past two years [nL0144002].

The output price index rose to 61.9 from 60.6 in the previous month. Output price inflation has scaled a fresh series high every month of 2008 so far.

By 0839 GMT, the euro was down almost 0.7 percent on the day at 78.09 pence <EURGBP=> while the pound was 0.1 percent higher at $1.9887 <GBP=>.

Britain'S FTSE 100 <.FTSE> Index was little impacted after the data, down 0.3 percent by 0833 GMT.

"The reading was stronger than expected so it's given a bit of a boost to the pound," said Lee Hardman currency strategist at BTM-UFJ.

(Reporting by London Markets Team)

((RM:veronica.brown.reuters.com@reuters.net; Tel: +44 207 542 6745))

Keywords: MARKETS FOREX/STERLING