IMS FX Morning Report 21-09-2010

Good Morning,

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

EURO HEADLINES:

• 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%

US DOLLAR HEADLINES:

• 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

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