Best Currency Exchange Rates

IMS FX MORNING REPORT for Wednesday 27th October 2010

Today's Interbank rates -

POUNDS TO US DOLLARS 1.5853
POUNDS TO EUROS 1.1457
POUNDS TO AUSTRALIAN DOLLARS 1.6286

EUROS TO US DOLLARS 1.3872
EUROS TO POUNDS 0.8788
EUROS TO AUSTRALIAN DOLLARS 1.4214

POUND HEADLINES:

• Tuesdays economic growth figures for the three months from July to September were higher than expected even though they showed a slowing of growth to 0.8% from 1.2% in the previous quarter. Tuesdays figure is the strongest quarter figure in a decade. The construction sector proved to be the strongest showing an output which is 11% higher than it was a year ago
• Ratings agency Standard and Poor's revises its outlook on the UK to stable from negative and confirming the UKs AAA rating. Mr Osbourne welcomed what he called a "double dose of good news" for the economy
• Following yesterdays strong GDP figures and S&Ps revised outlook on the UK, the announcements had the effect of dampening speculation of an imminent policy change from the Bank of England to extend quantitative easing.
• Sterling outperformed both the Euro and Dollar along with most other majors yesterday achieving its best daily gain against the euro since June

EURO HEADLINES:

• The euro has had a slight drop this morning as Greece returns to the spotlight. Spreads on 10yr Greek Bonds jumped by 31bps to 9.57% as investors awake to the risk of policy upheaval. "We have not yet escaped the danger. I am sounding the alarm", George Papandreou, the Greek premier said.
• French consumer spending for September M/M comes in at 1.5% beating expectations of 0.4%. The Y/Y figure is 1.1% beating expectations of 0.3%
• French Jobseekers rose 4.6k to a total of 2697.1k. August reading was a 15.9k rise to 2692.5k

US DOLLAR HEADLINES:

• US house prices dip again in august. Prices were down 0.3% versus the previous month. Separately US consumer confidence rose in October although it remains at historically low levels
• This morning a wall street journal article has said the Federal reserve was likely to unveil plans for 'gradual' Treasury purchases at its policy meeting next week, less than the market has been anticipating
• Growing expectations that the Fed may proceed more cautiously than previously thought is giving the dollar a helping hand heading into the Fed' Nov 3rd meeting.

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Kris Charalambides

FX Broker

kris@imsfx.co.uk

www.imsfx.co.uk

Tel: 0207 183 2790