MARKET HEADLINES
Sterling slips after UK industrial data misses forecasts
Sterling pared early gains against the dollar on Friday after data showed British industrial production and construction unexpectedly contracted in November, bolstering the view that economic growth is moderating. Industrial output fell by 0.1 percent on the month in November, extending October's decline. A Reuters poll had forecast a 0.2 percent rise, month-on-month, and a 1.6 percent rise annually. Construction output dropped by 2 percent on the month. Friday's data added to signs that Britain's economic recovery may be losing steam. That view has already prompted investors to push back expectations of when the Bank of England (BoE) will start to raise interest rates to next year. Six months ago, many expected a move before the end of 2014. Sterling slipped to $1.5125 from around $1.5145 before the two sets of data, still up 0.2 percent on the day. The pound hit a 18-month low of $1.5034 on Thursday and was on track for its fourth straight week of losses against the dollar. The euro was down 0.1 percent at 78.10 pence, having traded at 77.99 pence before the data was released.
Dollar slips vs yen on risk aversion, euro fragile
The dollar slipped against the safe-haven yen on Tuesday as investor risk aversion mounted on the back of a sharp drop in equities. The battered euro caught some relief as the dollar stumbled against the yen, helping the common currency pull back a bit from a nine-year trough. Persistent weakness in oil prices and uncertainly over the Greek political situation have spooked investors, sending Wall Street to its biggest one-day fall in about three months. As the region's equities floundered -- Tokyo's Nikkei sank 3 percent -- the resulting flight to safety drove investors into the yen. As a result, the dollar dipped to as low as 118.65 yen from Monday's high of 120.68, moving further away from a seven-year peak of 121.86 set last month. A sharp fall in US Treasury yields also undermined the dollar versus the yen, with 10-year yields diving 14 basis points.
The euro last traded at $1.1961, up 0.3 percent, after dipping into the $1.1860 area.
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