Monday 11 October 2010

IMS FX Morning Report 11-10-2010

IMS FX MORNING REPORT for Monday 11th October 2010

Today's Interbank rates -

POUNDS TO US DOLLARS 1.5940
POUNDS TO EUROS 1.1431
POUNDS TO AUSTRALIAN DOLLARS 1.6177


EUROS TO US DOLLARS 1.3945
EUROS TO POUNDS 0.8749
EUROS TO AUSTRALIAN DOLLARS 1.4154


POUND HEADLINES:

  • Following on comments from an ECB member sterling picked
    up to climb back above 1.14. Sterling was able to reserve some of the weeks
    losses after Eurogroup Chairman Jean-Claude Juncker said the euro was too
    strong
  • Focus this week will be on tomorrows UK inflation figure
    where the rate is expected to hold above 3.0%
  • Sterling rose to a near 8 month high against the dollar
    on Friday following on from disappointing data from the US but held short of
    retesting the 1.60 level.
EURO HEADLINES:


  • Weak data this morning as French manufacturing production
    M/M comes in at 0.0% missing expectations of 0.4%. The Y/Y figure is 3.2%
    missing expectations of 3.7%
  • French Industrial Production for August again comes in
    lower than expected at 0.0% missing expectations of 0.3%. The Y/Y figure is
    3.2% missing expectations of 3.6%
  • Strong data from Italian Industrial production for August
    M/M comes in at 1.6% blowing past expectations of 0.1%. The Y/Y figure is
    12.8% beating 9.6% forecast
US DOLLAR HEADLINES:


  • US Non-Farms Payroll for September came back at -95k
    versus expectations of -5k. The fall was almost double Augusts 54,000 job
    loss number. The news increases expectations that the US federal reserve
    will take further action
  • The US dollar has now suffered four straight weekly
    declines against the euro, its longest stretch of losses since December 2008
    as investors speculate that the Federal reserve will debase the currency by
    stepping up purchases of government debt
  • Tomorrow we have USD Federal Open Market Committee
    Meeting Minutes
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

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