IMS FX Morning Report 28-09-2010

Good Morning,

IMS FX MORNING REPORT - Tuesday 28/09/2010

Interbank rates as follows -

POUNDS TO US DOLLARS 1.5830
POUNDS TO EUROS 1.1809
POUNDS TO AUSTRALIAN DOLLARS 1.6514

EUROS TO US DOLLARS 1.3405
EUROS TO POUNDS 0.8467
EUROS TO AUSTRALIAN DOLLARS 1.3983

POUND HEADLINES:

• UK GDP Q2 comes in as expected at 1.2% M/M and 1.7% Y/Y. UK total
  business investment comes in at 0.7% M/M and 1.9% Y/Y versus consensus
  estimates of -1.6% M/M and 1.9% Y/Y
• Sterling hit a 7 week high against the dollar yesterday with USD
  continuing to struggle on expectations that the FED may ease monetary policy
  further to help the economy by way of quantitative easing
• IMF (International Monetary Fund) says Britain's economy is 'on the
  mend' but it cuts its growth forecast to 2.0% from its estimate of 2.1%.
  'Economic recovery is underway, unemployment has stabilised and financial
  sector health has improved' the IMF said.

EURO HEADLINES:

• Eurozone: Trichet says risk to inflation outlook 'slightly on the
  upside' but currently remain firmly anchored also to expect 'economic
  recovery to proceed at moderate pace'. Trichet also says that he sees
  'continuing uncertainty surrounding outlook' and added that current monetary
  policy is 'accommodative'.
• Germany the largest economy in the EU has released data this morning
  revealing consumer confidence has come in much better than expected at 4.9
  versus expectation for 4.2.
• The Euro briefly touched its strongest level yesterday against the
  dollar since April reaching above 1.35 however the euro fell as renewed
  signs of debt problems at European banks and nations reduced demand for
  assets

US DOLLAR HEADLINES:

• Sterling extended its rally against the dollar yesterday to five
  consecutive days as US continuing to struggle on expectations that the FED
  may ease monetary policy. Sterling was also helped as IMF gave its
  endorsement to the governments fiscal tightening plans.
• Big headline news will be towards the end of the week with the US
  releasing GDP figures therefore expect to see volatility towards the later
  end of the week
• Dallas Fed manufacturing activity came in at -17.7% worse than
  expectations of -7.0%

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