FOREIGN EXCHANGE RATES REPORT 02-09-2010

Hi All

Thursday 02/09/2010. Interbank rates as follows -

POUNDS TO US DOLLARS 1.5391
POUNDS TO EUROS 1.2006
POUNDS TO AUSTRALIAN DOLLARS 1.6947
EUROS TO US DOLLARS 1.2825
EUROS TO POUNDS 0.8332
EUROS TO AUSTRALIAN DOLLARS 1.4121

POUND HEADLINES:

• Manufacturing PMI dropped to a nine month low reading 54.3% as house
  prices fall for a 2nd month in a row causing sterling to drop to a 3 week
  low against the euro
• GBPUSD - Sterling stands out as main under performer on Thursday
  following some weaker housing data and concerning IMF (International
  Monetary Fund) debt comments
• Nationwide House price index has confirmed 0.9% drop in August, its
  biggest drop since February 2009

EURO HEADLINES:

• ECB will confirm policy decision later today which should see interest
  rates left on hold at 1.00% followed by press conference
• German growth is expected to perform above average as expected but Italy
  and Spain are expected to underperform (Greece included!), which would make
  it impossible to set rates to encourage growth and control inflation
• GBPEUR - very volatile and just holding above 1.20 this morning

US DOLLAR HEADLINES:

• US manufacturing sector has grown faster than expected which has been
  revealed in August figures
• Key US data tomorrow will see release of Non-Farm Payroll activity
  therefore investors remain cautious ahead of this
• In trading this morning sterling has fallen below $1.54 after the
  release of negative UK housing data

If you need to buy, sell or make an international payment today then please
call me for a free quote.

Kris Charalambides

FX Broker

kris@imsfx.co.uk

www.imsfx.co.uk

Tel: 0207 183 2790