IMS FX Morning Report 29-09-2010

Good Morning,

IMS FX MORNING REPORT - Wednesday 29/09/2010

Interbank rates as follows -

POUNDS TO US DOLLARS 1.5823
POUNDS TO EUROS 1.1630
POUNDS TO AUSTRALIAN DOLLARS 1.6290

EUROS TO US DOLLARS 1.3604
EUROS TO POUNDS 0.8597
EUROS TO AUSTRALIAN DOLLARS 1.4006

POUND HEADLINES:

• Sterling fell to a 4 month low against the euro yesterday plunging below
  1.17 following comments from BOE policy member. Possen says "further easing
  should be undertaken".
• UK CBI reported sales come much higher than expected at 49 versus 25
  consensus and 35 previous
• UK GDP gains momentum in the second quarter. UK economy activity in the
  second quarter rose 1.2% from the quarter prior, which was in line with
  economists expectations. Main drivers were stronger fixed investment and
  government consumption

EURO HEADLINES:

• France consumer confidence comes in better than expected at 35 versus
  the -39 consensus estimates and -39 previous
• Italy business confidence comes in at 98.4 below consensus estimates of
  100.1, previous print also revised lower to 99.3
• In early trading the euro did fall slightly on rumours that Moody's
  would soon downgrade Spain's AAA rating by possibly two notches

US DOLLAR HEADLINES:

• US dollar is still under pressure due to possibility that Fed will pump
  over a trillion dollars into the system to help stimulate the economy. This
  has enabled the pound to reach a seven week high
• US consumer confidence falls to its lowest level since February this
  year. falls from 53.2 to 48.2 (expected 52.1)
• Disappointing data yesterday showed that US home prices rose at a slower
  pace in July which has again fuelled speculation about the Feds policies

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