IMS FX Morning Report for Tuesday 21st September 2010.
Interbank rates as follows -
POUNDS TO US DOLLARS 1.5536
POUNDS TO EUROS 1.1820
POUNDS TO AUSTRALIAN DOLLARS 1.6417
EUROS TO US DOLLARS 1.3143
EUROS TO POUNDS 0.8459
EUROS TO AUSTRALIAN DOLLARS 1.3889
POUND HEADLINES:
- Sterling has fallen to a 7 week low against the euro following a raft of
weak economic data from the UK. Property asking prices have fallen for a
third consecutive month, home loan approvals have dropped to their lowest in
over a year and lending to UK businesses has fallen for the fifth month in
July. - Office for National statistics has revealed that public sector net
borrowing was higher than expected at 15.9bn - Tomorrow Bank of England minutes released will reveal how MPC members
voted and if any voted for an interest rate hike. If members have voted in
favour then we could see sterling gains
- In the eurozone today focus will be on an Irish bond auction. If the
currency does not attract strong demand then we could see pressure on the
euro - Demand by investors to hold Irish bonds climbed to 6.5% which is a
record high for Ireland since it became a eurozone member - Swiss money supply M3 YoY at 6.6%, previous was at 6.5%
- 2yr treasury yield falls to record low of 0.4479%
- In the US there is an interest rate decision tonight therefore may not
be much movement on the dollar ahead of the Fed's policy announcement - Interests rates are likely to remain on hold although speculation that
the US Fed Reserve would highlight the need for more stimulus to support an
ailing recovery has softened demand for the dollar
call me for a free quote.
Kris Charalambides
FX Broker
Tel: 0207 183 2790
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