DAILY REPORT FRIDAY 25^TH APRIL 2008

Good Morning,

The USD strengthened yesterday as data released showed signs of resilience in the US labour market. The US economy also delivered mixed news however as new home sales data showed an increasingly beleaguered housing market.

The USD gained almost 1.5 percent against the EUR intraday trading below 1.5600 after government data showed both initial and continuing US jobless claims fell. Initial jobless claims totalled 342k in the week ended April 19, which was below market estimates of 375k and the New home sales are now down 62% from the July 2005 peak.

The Euro was weighed down by a weak consumer confidence measure in Germany (German IFO data) which fell to its lowest level since January 2006 and represented the biggest monthly fall in German business sentiment since September 2001.

Sterling rose against the Euro which had moved lower against the USD yesterday to 1.2600 but fell against the USD, down to 1.9700 as data left investors mixed on the prospects of future rate cuts. The UK retail sales fell 0.4% in March, however, and upward revisions to previous months helped lift the annual rate to a pace of 4.6%.

The UK first Quarter GDP growth data is due to be published at 09:30 GMT and the market consensus sees the figure falling - 0.2% to 2.6% y/y although there are possible upside risks to the number. With lower Retail sale figures and possible lower GDP there will again be expectations for an Interest Rate cut by the Bank of England.

In the US , the Michigan consumer sentiment index for April is published at 14:00.

Michael Ince

Archive News

This commentary is generic and may not suit all circumstances. Before taking any action, we recommend either contacting your trader for guidance or obtaining independent financial advice. The information in this document was obtained from sources believed to be reliable but its accuracy and completeness cannot be guaranteed. The views and recommendations in this communication are typically short term trading views. Comments constitute views at the time of writing and are subject to change without notice. The rates shown are all indications. For specific quotations, please contact your usual trader. This document is not intended as an offer, solicitation or recommendation to buy or sell.