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  • Added for You - Euro Pounds Currency Exchange - How this Affects Your Spanish Property Purchase; I

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    re tightening monetary policy or are expected to start doing so soon. I have mentioned this on several times over the phone.

    However, some analysts said that British inflation could yet pick up in the coming months as oil prices cont

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    Currency market update 21st April 2006 Sterling rallied a quarter percent against the euro and steadied against the dollar below recent seven-month lows on Friday, with markets focused on the UK inflation outlook.

    News that UK consumer prices rose an annual 1.8 percent in March -- below forecasts for a 2 percent increase -- sent the pound lower versus the euro on Thursday.

    Earlier in the week, minutes from the Bank of England Monetary Policy Committee's April meeting by contrast showed that members saw upside risks to prices stemming from higher energy costs, even though all but one voted to keep rates at 4.50 percent.

    "After the CPI, a lot of the risk that rates will go up has been taken out of the market," said Tony Norfield, head of foreign exchange research at ABN Amro. "We are bearish on sterling."

    Yet again prospects of a cut in British rates are particularly negative for sterling when other major central banks are tightening monetary policy or are expected to start doing so soon. I have mentioned this on several times over the phone.

    However, some analysts said that British inflation could yet pick up in the coming months as oil prices conti

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    mer prices rose an annual 1.8 percent in March -- below forecasts for a 2 percent increase -- sent the pound lower versus the euro on Thursday.

    Earlier in the week, minutes from the Bank of England Monetary Policy Committee's April meeting by contrast showed that members saw upside risks to prices stemming from higher energy costs, even though all but one voted to keep rates at 4.50 percent.

    "After the CPI, a lot of the risk that rates will go up has been taken out of the market," said Tony Norfield, head of foreign exchange research at ABN Amro. "We are bearish on sterling."

    Yet again prospects of a cut in British rates are particularly negative for sterling when other major central banks are tightening monetary policy or are expected to start doing so soon. I have mentioned this on several times over the phone.

    However, some analysts said that British inflation could yet pick up in the coming months as oil prices cont

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    eeting by contrast showed that members saw upside risks to prices stemming from higher energy costs, even though all but one voted to keep rates at 4.50 percent.

    "After the CPI, a lot of the risk that rates will go up has been taken out of the market," said Tony Norfield, head of foreign exchange research at ABN Amro. "We are bearish on sterling."

    Yet again prospects of a cut in British rates are particularly negative for sterling when other major central banks are tightening monetary policy or are expected to start doing so soon. I have mentioned this on several times over the phone.

    However, some analysts said that British inflation could yet pick up in the coming months as oil prices cont

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    ut of the market," said Tony Norfield, head of foreign exchange research at ABN Amro. "We are bearish on sterling."

    Yet again prospects of a cut in British rates are particularly negative for sterling when other major central banks are tightening monetary policy or are expected to start doing so soon. I have mentioned this on several times over the phone.

    However, some analysts said that British inflation could yet pick up in the coming months as oil prices cont

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    re tightening monetary policy or are expected to start doing so soon. I have mentioned this on several times over the phone.

    However, some analysts said that British inflation could yet pick up in the coming months as oil prices continue to set record highs.

    Signs of a pick-up in the housing market could also discourage the BoE from cutting rates.

    British retailer John Lewis Partnership said on Friday weekly department store sales were up 13.5 percent in the latest week.

    Currency markets are focused on the G7 meeting in Washington on Friday. U.S. Treasury Secretary John Snow holds the G7 news conference at 2330 GMT, following the meeting.

    Interbank Rates
    GBP/EURO – 1.4420
    EUR/GBP – 1.4470
    EUR/USD - 1.2350
    GBP/USD – 1.7775
    USD/GBP - 1.7810
    GBP/AUD - 2.3950
    GBP/NZD - 2.8050
    GBP/CAD - 2.0220
    GBP/CYP - 0.8295
    GBP/AED – 6.5320
    GBP/ZAR – 10.7100
    GBP/CHF – 2.2715
    GBP/PLN – 5.6000
    GBP/CZK – 41.030
    GBP/THB – 67.190

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