IMS FX Morning Report - 30-09-2010

Good Morning,

IMS FX MORNING REPORT - Thursday 30/09/2010

Interbank rates as follows -

POUNDS TO US DOLLARS 1.5917
POUNDS TO EUROS 1.1654
POUNDS TO AUSTRALIAN DOLLARS 1.6413

EUROS TO US DOLLARS 1.3657
EUROS TO POUNDS 0.8582
EUROS TO AUSTRALIAN DOLLARS 1.4086

POUND HEADLINES:

• Sterling fell below 1.16 for the first time since mid-May hitting a 4
  month low following on from policy member comments of a renewed bout of
  asset purchases
• UK Nationwide house prices (YoY) for September at 3.1% beating
  expectations of 2.6% (prior month at 3.9%)
• Mortgage approvals held below 50k for the eighth month in a row, 60%
  below the peak levels that were reached in 2006. A report has also shown
  that UK mortgage lending has fallen for a fourth month in August adding
  signs the recovery is faltering

EURO HEADLINES:

• rish bank 'Anglo Irish bank' will cost up to 34bn euro's to bail out.
  Anglo Irish was most dependent on property values, the sector worst effected
  by the credit crunch. Irish finance minister 'Brian Lenihan' said, the bank
  was too big to fail.
• Eurozone CPI estimate YoY (September)in line with expectations at 8.1%
  prior month at 1.6%
• German unemployment rate for September fell to 7.5% beating expectations
  of 7.6% previously at 7.6%

US DOLLAR HEADLINES:

• With both the UK and the US central banks promoting the idea of further
  quantitative easing the pound dollar has been trading sideways for the past
  couple of sessions
• Dollar hit a 5 month low against the euro yesterday on the back of
  growing prospects for further monetary easing
• Today we have US GDP Q2 which is expected to show growth of 1.8%.
  Anything less is likely to weaken the value of the dollar further

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