IMS FX MORNING REPORT - Monday 4th October 2010
Interbank rates as follows -
POUNDS TO US DOLLARS 1.5794
POUNDS TO EUROS 1.1535
POUNDS TO AUSTRALIAN DOLLARS 1.6340
EUROS TO US DOLLARS 1.3692
EUROS TO POUNDS 0.8669
EUROS TO AUSTRALIAN DOLLARS 1.4166
POUND HEADLINES:
- UK PMI construction comes in at 53.8 for September
beating expectations of 51.4 - On Thursday BOE announces its interest rate decision. A
hawkish outlook from the bank and a rate rise would be positive for the
sterling. Dovish comments could see the GBP lose further ground to the euro - Chancellor Osbourne has quoted that the UK has moved out
of financial data zone and that the UK is set for a steady, sustainable
recovery. There is no indication that UK banks will need more support. He
also says he has agreed to a 'truly radical reform of welfare which will
greatly reduce the cost of welfare'.
- Euro reached a seven month high against the dollar last
week near 1.58 - German based Sentix Research Institute reported today
that investor confidence rose to the highest level in almost 3 years in
October. The index touched 8.8 beating expectations of 8.0. Sentix said that
demand from emerging economies brightened the outlook - Eurozone PPI (Aug) M/M comes in at 0.1% missing
expectations of 0.2%. The Y/Y figure comes in as expected at 3.6%
- US housing figures are in focus this afternoon but
attention will be on Fridays monthly payroll data which is likely to have a
significant impact on the Feds next policy decision - Manufacturing figures from the Institute for Supply
Management supported the Feds forecast of modest US growth but did little to
shift sentiment - The dollar has remained under heavy pressure against most
currencies amid concerns that the US may have to pump more money into its
ailing economy
call me for a free quote.
Kris Charalambides
Tel: 0207 183 2790
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