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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: maceng2 who wrote (28189)	4/27/2010 7:19:35 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 71454

And now: Sterling slips on inconclusive polls, weaker data * Sterling down 0.8 pct vs dollar <GBP=D4> * Opinion polls show no party to gain majority at election * Weaker-than-forecast UK data weighs on pound LONDON, April 27 (Reuters) - Sterling fell versus the dollar and the euro on Tuesday as fresh opinion polls pointed to no party holding a majority in the next parliament and weaker-than-forecast data dented enthusiasm for the pound. Investors are worried an inconclusive election result would hamper action to fix Britain's public finances, an outcome which is looking increasingly likely on May 6, if voting follows the latest opinion polls. Three surveys published on Tuesday suggested the ruling Labour party would remain the largest group in parliament despite coming third in terms of votes. [nUKPOLLS10] "The market is becoming fixated with a hung parliament as we approach the election and that's hitting the pound today. The UK data didn't help sentiment either," said Michael Hewson, currency analyst at CMC Markets. At 1104 GMT, sterling had fallen around 0.8 percent versus the dollar <GBP=D4> to trade close to a session low of $1.5321. It had traded to a high of $1.5487 in Asia. "There's a drag from the political side of things which isn't helping sterling," said Tom Levinson, currency strategist at ING. Traders said UK clearer supply of sterling had exacerbated the fall in the European session, with liquidity said to have been poor. British retail sales growth held steady in April with a reading of +13 in April, pushing the three-month average up to its highest in almost three years, a survey by the Confederation of British Industry indicated on Tuesday. [ID:nLDE63P1EK] But this was weaker than market expectations of +15, with weak mortgage approvals adding to market disappointment. The number of mortgages approved for house purchase in March rose to 34,905, while net mortgage lending rose by 2.4 billion pounds, the smallest rise since July 2009, data from the British Bankers' Association showed on Tuesday.[ID:nLAK002583] Euro/sterling <EURGBP=D4> traded with slight gains at 86.82 pence. But analysts saw limited scope for further euro gains against the pound as structural problems in the euro zone hampered overall sentiment towards the single currency. "There are further hurdles ahead for the euro. I think sterling will continue to benefit from euro weakness," said Jane Foley, director of currency strategy at Forex.com. The euro matched its year-to-date low on Tuesday at 86.03 as worry over Greek efforts to secure financial aid in paying its debts weighed heavy on euro zone sentiment. Sterling <=GBP> slipped back from a two-month trade-weighted high of 80.1 hit on Tuesday. Analysts said that high had largely been driven by euro weakness, as the single currency takes up the largest share in the trade-weighted basket. (Editing by Tony Austin) ((neal.armstrong@thomsonreuters.com; Reuters Messaging: neal.armstrong.reuters.com@reuters.net; +44-207-542-0876)) Keywords: MARKETS STERLING/MIDSESSION