IMS FX Morning Report 07-10-2010

Good Morning,

IMS FX MORNING REPORT - Thursday 7th October 2010

Interbank rates as follows -

POUNDS TO US DOLLARS 1.5921
POUNDS TO EUROS 1.1400
POUNDS TO AUSTRALIAN DOLLARS 1.6101

EUROS TO US DOLLARS 1.3965
EUROS TO POUNDS 0.8771
EUROS TO AUSTRALIAN DOLLARS 1.4119

POUND HEADLINES:

• UK house prices have fallen by 3.6% in September from the
  previous month according to the latest figures from Halifax. The 3.6% drop
  was the biggest fall in month on month prices since the figures were first
  compiled in 1983
• Sterling has been underperforming against most currencies
  due to expectation of further quantitative easing measures and the latest
  housing data does not help
• As the pound continues to fall , focus today will be on
  the policy announcements from both the Bank of England and the European
  Central bank this afternoon at 12pm and 13.30 respectively

EURO HEADLINES:

• German factory orders rose by 3.4% in September above
  expectations enhancing the strength of the euro
• The euro has risen by more than 9% since the start of
  September against the dollar which reflects the fact that the ECB is one of
  the only large central banks that is actually not putting pressure on its
  currency by announcing or considering quantitative easing
• Irelands rating was cut yesterday to A+ by 'Fitch'
  although this again has had no real impact on the value of the euro

US DOLLAR HEADLINES:

• US dollar is at multi-year or all-time lows versus all
  major rivals except the euro and pound - where it is at multi-month lows
• US ADP employment change unexpectedly fell by 39k versus
  expectations for a 20k gain
• Former Fed chairman Volker says 'emerging world' growth
  'in terrific form' but global imbalances 'need to be corrected'

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