IMS FX MORNING REPORT 22-09-2010

Good Morning,

IMS FX MORNING REPORT - Wednesday 22/09/2010

Interbank rates as follows -

POUNDS TO US DOLLARS 1.5680
POUNDS TO EUROS 1.1740
POUNDS TO AUSTRALIAN DOLLARS 1.6407
EUROS TO US DOLLARS 1.3359
EUROS TO POUNDS 0.8518
EUROS TO AUSTRALIAN DOLLARS 1.3975

POUND HEADLINES:

• Pound has fallen to a 2 month low against the euro following on from
  higher than expected borrowing in the UK public sector and also the with the
  euro strengthening following on from high demand for Irish and Greek bonds
  which helped push the single currency
• Public sector borrowing rose to £15.3bn in August which was a record
  high going against expectations of a drop to £12.5bn
• Bank of England minutes reveal MPC voted 8-1 to keep policy steady with
  dissent from Sentance who wanted to see 25BP rate hike

EURO HEADLINES:

• Eurozone sovereign debt eased due to high demand for Irish and Greek
  bonds at auction.
• The euro has strengthened against the dollar overnight following strong
  demand for eurozone debt and with also the Fed confirming the need for
  further monetary stimulus
• Tomorrow the focus will remain on financial stability as Portugal is set
  to auction (they increased their deficit assessment today)

US DOLLAR HEADLINES:

• Overnight the Fed have made it clear that inflation is too low and
  policy could be adjusted to address the problem. Uncertainty looks set to
  undermine the US dollar with sterling breaking above resistance this morning
  to briefly touch $1.57
• GBP/USD coming under pressure following on from comments from bank of
  England which reveal potential for more quantitative easing measures
• EUR/USD is trading above $1.33which is a five month high following on
  from weak Euro zone industrial data this morning

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