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    low of $1.7806, down 0.3 percent on the day, off Tuesday's seven-month high of $1.7943.

    Elsewhere, ECB executive board member Lorenzo Bini Smaghi said that if the European economic recovery strengthened, th

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    Currency markets update 26th April 2006

    Sterling Falls Against Majors

    Sterling hit a fresh two-week low against the euro and also lost ground against the dollar on Wednesday after UK growth data which came in line with expectations prompted some position adjustment.

    Britain's economy grew 0.6 percent in the first quarter of 2006 with the annual rate of 2.2 percent, exactly in line with analysts' forecasts.

    Service sector growth slowed to 0.6 percent, after growing 1 percent in the last three months of 2005, due to weaker retail and car sales.

    "The data was bang in line with expectations," said Ian Stannard, currency strategist at BNP Paribas. "We are seeing cable coming under pressure in a corrective pullback after the gains we have seen in the past couple of weeks."

    By 0845 GMT the pound fell to the day's low of $1.7806, down 0.3 percent on the day, off Tuesday's seven-month high of $1.7943.

    Elsewhere, ECB executive board member Lorenzo Bini Smaghi said that if the European economic recovery strengthened, the

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    came in line with expectations prompted some position adjustment.

    Britain's economy grew 0.6 percent in the first quarter of 2006 with the annual rate of 2.2 percent, exactly in line with analysts' forecasts.

    Service sector growth slowed to 0.6 percent, after growing 1 percent in the last three months of 2005, due to weaker retail and car sales.

    "The data was bang in line with expectations," said Ian Stannard, currency strategist at BNP Paribas. "We are seeing cable coming under pressure in a corrective pullback after the gains we have seen in the past couple of weeks."

    By 0845 GMT the pound fell to the day's low of $1.7806, down 0.3 percent on the day, off Tuesday's seven-month high of $1.7943.

    Elsewhere, ECB executive board member Lorenzo Bini Smaghi said that if the European economic recovery strengthened, th

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    .

    Service sector growth slowed to 0.6 percent, after growing 1 percent in the last three months of 2005, due to weaker retail and car sales.

    "The data was bang in line with expectations," said Ian Stannard, currency strategist at BNP Paribas. "We are seeing cable coming under pressure in a corrective pullback after the gains we have seen in the past couple of weeks."

    By 0845 GMT the pound fell to the day's low of $1.7806, down 0.3 percent on the day, off Tuesday's seven-month high of $1.7943.

    Elsewhere, ECB executive board member Lorenzo Bini Smaghi said that if the European economic recovery strengthened, th

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    ard, currency strategist at BNP Paribas. "We are seeing cable coming under pressure in a corrective pullback after the gains we have seen in the past couple of weeks."

    By 0845 GMT the pound fell to the day's low of $1.7806, down 0.3 percent on the day, off Tuesday's seven-month high of $1.7943.

    Elsewhere, ECB executive board member Lorenzo Bini Smaghi said that if the European economic recovery strengthened, th

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    low of $1.7806, down 0.3 percent on the day, off Tuesday's seven-month high of $1.7943.

    Elsewhere, ECB executive board member Lorenzo Bini Smaghi said that if the European economic recovery strengthened, the central bank would adjust rates to avoid inflation, in comments published in an Italian newspaper.

    Meanwhile, ECB governing council member Axel Weber told Bloomberg television that risks of second-round inflation effects had risen.

    Most analysts expect the ECB to wait until June before raising rates from 2.5 percent after ECB President Jean-Claude Trichet earlier this month doused widespread expectations for a move as soon as the May 4 meeting. Even so these comments will serve to put further pressure on Sterling in the coming months.

    Interbank rates
    GBP/EURO – 1.4340
    EUR/GBP – 1.4389
    EUR/USD - 1.2379
    GBP/USD – 1.7790
    USD/GBP - 1.7850
    GBP/AUD - 2.3880
    GBP/NZD - 2.8370
    GBP/CAD - 2.0140
    GBP/CYP - 0.822
    GBP/AED – 6.535
    GBP/ZAR – 10.95
    GBP/CHF – 2.2610
    GBP/

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