IMS FX Morning Report 06-10-2010

Good Morning,

IMS FX MORNING REPORT - Wednesday 6th October 2010

Interbank rates as follows -

POUNDS TO US DOLLARS 1.5902
POUNDS TO EUROS 1.1474
POUNDS TO AUSTRALIAN DOLLARS 1.6276

EUROS TO US DOLLARS 1.3858
EUROS TO POUNDS 0.8714
EUROS TO AUSTRALIAN DOLLARS 1.4186

POUND HEADLINES:

• Despite good UK services sector data the pound has fallen
  again this morning against the euro amid concerns that the economy may
  require further monetary easing
• Sterling rose to a 2 month high yesterday against the
  dollar despite underperforming against most other currencies thanks to
  better than expected PMI services data
• Pound may be volatile today ahead of tomorrows BOE nterest rate decision where it is expected that interest rates will remain on hold

EURO HEADLINES:

• Been the inform currency at the moment the Euro seems to
  have shrugged off warnings from 'Moody's' about Irelands credit rating
• The euro almost hit an 8 month high against the dollar
  yesterday due to persistent demand from Asian Sovereign Accounts which are
  willing buyers when the price dips
• Eurozone Q2 GDP comes back as expected (QoQ) 1.0% and
  (YoY) 1.9% as expected

US DOLLAR HEADLINES:

• US Services sector expanded slightly more than expected
  in September although this had no real impact on the dollar
• US employment figures are in focus today although this is
  unlikely to change the Feds attitude towards additional stimulus measures
• In the US ABC consumer confidence fell from -45 to -47 in
  the week ended October 3rd

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