IMS FX Morning Report - 01-10-2010

Good Morning,

IMS FX MORNING REPORT - Friday 1st October 2010

Interbank rates as follows -

POUNDS TO US DOLLARS 1.5853
POUNDS TO EUROS 1.1537
POUNDS TO AUSTRALIAN DOLLARS 1.6308

EUROS TO US DOLLARS 1.3740
EUROS TO POUNDS 0.8667
EUROS TO AUSTRALIAN DOLLARS 1.4132

POUND HEADLINES:

• Sterling has fallen to a 4 month low against the euro now
  trading in the low 1.15s
• UK PMI Manufacturing comes in slightly weaker at 53.4
  versus 53.8 expected
• UK bank of England housing equity withdrawal at - GBP
  6.2Bn versus forecasts for - GBP 2.9Bn - previous revised lower to GBP 5.3Bn

EURO HEADLINES:

• Eurozone unemployment comes in at 10.1% slightly weaker
  than 10% expected and 10.0% previous.
• Eurozone manufacturing PMI comes in slightly firmer at
  53.7 versus 53.6 consensus estimates
• Euro did come under slight pressure yesterday following
  on from downgrade of Spain's sovereign debt by rating agency Moody's, also
  adding to worry was Ireland announcing a 34bn cost on bailing out Allied
  Irish bank.

US DOLLAR HEADLINES:

• Pound hit a seven week high yesterday reaching above 1.59
  however gains was short lived and closed half a cent lower on the day
• US initial Job claims declined to 453k versus 460k,
  continuing claims fell to 4457 from 4540k
• US GDP Q2 improved to 1.7% on an annualised basis, with
  personal consumption rising to 2.2% from 2.0%

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