EU future rattles currencies (page 2 of 2)

Next week, finance ministers from the Group of Eight industrialised nations will meet, ahead of July G8 summit in Scotland. Markets are eager to hear if any new pressure will be exerted on China to revlaue its currency.

Range for this week: Y106.00-Y109.00

Sterling

At the beginning of the week, sterling moved higher against the euro and the dollar in the wake of French "No" vote on the EU constitution and after retails sales and consumer confidence figures in UK came in line with expectations after a run of poor economic data in recent weeks.

As the week progressed, the pound trimmed its gains as weak British manufacturing and consumer credit data contrasted with recent strong U.S. numbers.

The Chartered Institute of Purchasing and Supply/NTC Research said British's manufacturing sector shrank at its fastest pace for over two years with the Purchasing Managers' Index falling to 47.3 in May from 49.1 in April.

The Bank of England said that British consumer credit rose by its smallest amount in one and half years in April while growth in mortgage lending picked up slightly. Consumer credit rose 1.3 billion pounds in April, less than 1.5 billion rise expected and the weakest since December 2003.

Week ahead, markets will focus on industrial production data for April, international trade figures and the Bank of England's interest rate decision, with expectations the BoE will leave interest rates steady at 4.75 pct.

Range for this week: $1.8000-$1.8300