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Poor manufacturing figures weigh on Sterling

US Dollar:
A decent set of figures yesterday helped the Greenback.. We saw retail sales rise for the 9th month in a row in April –total sales increased 0.5% last month-to continue the trend started in July 2010. However we have seen some retracement on EuroUsd as the currency has moved from yesterdays lows around the 1.4120 level to sit presently around the 1.4250 area. Market attention for the day will focus on Core CPI due at 1.30pm with the markets expecting a figure of 0.2%.. After the decent moves we have seen across the board in the last few days it would not surprise me to see relatively quiet markets today as people take stock  before we all get going again on Monday.                                                                                                                                                    

DATA: 13.30 Core CPI Expected 0.2%    

A poor day was seen yesterday for Sterling. We saw a retreat from Wednesdays high of 1.6515 weighed down by weaker than expected manufacturing figures . We saw it move to below 1.6300 reaching new 3 week lows. Industrial Production, which includes sectors such as mining and energy supply, grew 0.3% month-on-month in March, while manufacturing output reached 0.2%. The market expectations were for 0.8% and 0.4% respec¬tively. In a further report the IMF cut its forecast for UK economic growth-it talked figures of 1.70% for this year and 2.3% for 2012. This compares to the BOE estimate of 2.0% this year and 2.5% . However its not all doom and gloom. NIESR (National Institute of Economic and Social  Research ) have stated that although growth was likely to continue at a slow pace the threat of recession was over.
Data: 9.30 No major data today
Some people and countries seem to love the limelight and at the moment it is our old friends in Greece. How¬ever their neighbours ( not relatively speaking ) Portugal and Ireland are doing their utmost to have the attention diverted to them. The things countries will do to get some attention!! The picture still appears no better and cer¬tainly for the coming weeks and months (and more than likely years ) it will not be pleasant for these countries. The vast majority of international investors ( 85%) who were surveyed this week expect to see a sovereign de¬fault  by  Greece with the same fate to follow for Portugal and Ireland.  All these counties are expected to go belly up at some stage as the markets remain unconvinced that the powers to be ( the policy makers ) can pre¬vent Europe's first default                                                        
DATA : 9.00am ECB President Trichet Speaks
Both the Australian and New Zealand suffered losses as declines in stocks in commodities sapped demand for higher-yielding assets.


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GBP/USD 1.6260
GBP/EUR 1.1400
EUR/USD 1.4260
GBP/JPY 130.80


GBP/NZD 2.0465
GBP/ZAR 11.2500


GBP/CAD 1.5645
GBP/SGD 2.0150


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