LONDON, May 15 (Reuters) - The euro wiped earlier gains versus the dollar on Thursday after European Central Bank President Jean-Claude Trichet warned that second-quarter growth in the single currency zone would be "less flattering."
By 1138 GMT, the euro had erased earlier gains made after robust first quarter German and euro zone GDP data to trade flat on the day at $1.5479 <EUR=>.
"Despite the strong German data, the overall outlook for euro zone growth in the coming quarters suggests a slower period," said David Page, economist at Investec.
"It's also a reminder of the some of the downside risks to inflation," he added.
(Reporting by Naomi Tajitsu and Veronica Brown)
((RM:veronica.brown.reuters.com@reuters.net; Tel: +44 207 542 6745))
Keywords: MARKETS FOREX/EURO
LONDON, May 15 (Reuters) - London interbank offered rates
for three-month sterling and euro funds rose again on Thursday.
The premium over secured lending rates continuing to widen,
notably in sterling after Bank of England Governor Mervyn King
underlined concerns about the elevated spreads.
Below are the British Bankers Association's latest daily
fixing of the interbank cost of lending dollar, euro and
sterling funds in percentage terms. The changes from the
previous session are in brackets.
EURO STERLING DOLLAR
O/N 4.01375 (-0.01250) 5.09750 (+0.01000) 2.25625 (+0.05375)
1WK 4.19813 (-0.01562) 5.11500 (+0.00500) 2.39625 (-0.00375)
2WK 4.27625 (+0.01750) 5.24875 (+0.00000) 2.45125 (+0.00250)
1MO 4.37688 (-0.00625) 5.45875 (+0.01000) 2.49750 (-0.00750)
2M0 4.67813 (+0.00125) 5.68313 (+0.01938) 2.63000 (-0.00438)
3MO 4.85750 (+0.00125) 5.84000 (+0.04250) 2.71875 (-0.00125)
6MO 4.89813 (+0.01000) 5.89625 (+0.06625) 2.94125 (+0.00250)
1YR 4.98500 (+0.01500) 5.97250 (+0.10687) 3.17625 (+0.00812)
3MTH LIBOR/OIS SPREAD (BPs)
83.55000 (+0.82500) 82.40000 (+2.85000) 72.82500 (+0.17500)
For RICs to the above rates, go to <0#LIBORSUPERRICS>.
(Reporting by Emelia Sithole-Matarise; editing by David Stamp)
((Reuters Messaging: emelia.sithole.reuters.com@reuters.net,
Email: emelia.sithole@reuters.com; +44 20 7542 6752))
Keywords: MARKETS LIBOR
LONDON, May 15 (Reuters) - The euro briefly slipped on Thursday, paring some gains after euro zone growth figures, while better than expected, took the shine off a surprising surge in German growth announced earlier in the day.
Euro zone economic growth in the first three months of the year rose 0.7 percent from the previous quarter, exceeding forecasts fro a 0.5 percent reading. Click on [nBRS000289]
Inflation in the region rose 3.3 percent from a year ago, in line with market expectations.
The euro momentarily slipped to around $1.5500 <EUR=> from $1.5520 before the figures were announced. By 0912 GMT, it traded at $1.5515, up nearly 0.3 percent on the day.
"The German number really knocked the ball out of the park and given the sheer scale of the increase it's surprising there was not a bigger kick for the overall euro zone number," said Jeremy Stretch, strategist at Rabobank.
(Reporting by Simon Falush and Naomi Tajitsu)
((naomi.tajitsu@reuters.com; Tel: +44207 542 5830, Reuters Messaging: naomi.tajitsu.reuters.com@reuters.net))
Keywords: MARKETS GROWTH/REACTION
LONDON, May 14 (Reuters) - Sterling hit a three month low versus the dollar, while UK stocks fell and gilts pared losses on Wednesday after the Bank of England's quarterly report showed inflation staying above target and growth slowing sharply.
Analysts say rising price pressures will limit the scope for growth-boosting interest rate cuts in coming months, potentially causing further problems for the economy.
"Overall the report makes very bearish reading really as far as sterling is concerned with the higher inflation and the weak growth picture as well," said Ian Stannard, senior FX strategist at BNP Paribas.
Sterling fell as low as $1.9366 <GBP=>, down around half a cent from levels seen before the inflation report.
At 0935 GMT, Britain's FTSE 100 <.FTSE> extended earlier losses, down 10.3 points, or 0.2 percent at 6,201.6.
The June long gilt future <FLGc1> pared losses, with the contract at 107/63, compared with 107.54 earlier. The June short sterling contract also pared losses, to stand at 94.220, down 2 ticks on the day. Before the BoE, it was at 94.215 <FSSM8>.
Earlier in the session, short sterling hit 94.200 - its lowest level since Oct. 21.
For more on the inflation report see [ID:nBOE001414].
(Reporting by London Markets Team)
((antonina.vorobyova@reuters.com; Tel: +44207 542 7958, Reuters Messaging: antonina.vorobyova.reuters.com@reuters.net))
Keywords: MARKETS BOE
LONDON, May 14 (Reuters) - Sterling extended losses towards an earlier three-month low versus the dollar on Wednesday after rises in UK earnings growth and in unemployment benefit claims highlighted the dilemma facing the Bank of England.
A slowing economy points to the need for interest rate cuts, while price pressures limit the scope for monetary easing.
For more on the UK jobs data see [nONS003525]
Sterling fell to around $1.9408 after the data, from $1.9450 previously. Earlier it hit a near three month low of $1.9392 <GBOP=>.
"The devil is in the details, and it is disapponting with regard to the jobless claims creeping higher than expectations," said Paul Mackel, director of currency strategy at HSBC Markets.
"It raises the debate over whether are we seeing a turning point in global market conditions ... and whether financial market weakness is starting to affect the UK labour market."
Next, the focus turns to the Bank of England's quarterly inflation report at 0930 GMT.
(Reporting by Naomi Tajitsu and Toni Vorobyova)
((antonina.vorobyova@reuters.com; Tel: +44207 542 7958, Reuters Messaging: antonina.vorobyova.reuters.com@reuters.net))
Keywords: MARKETS STERLING/JOBS
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