IMS FX Morning Report - 15-10-2010

IMS FX MORNING REPORT for Friday 15th October 2010

Today's Interbank rates -

POUNDS TO US DOLLARS 1.6052
POUNDS TO EUROS 1.1409
POUNDS TO AUSTRALIAN DOLLARS 1.6139

EUROS TO US DOLLARS 1.4080
EUROS TO POUNDS 0.8781
EUROS TO AUSTRALIAN DOLLARS 1.4156

POUND HEADLINES:

• Pound has stayed close to a 6 month low against the euro
  due to concerns that the Bank of England could ease monetary policy further
  although sterling did hit an 8 month high against the dollar yesterday
• MPC Sentance who has been calling for immediate interest
  rate hikes has found some support from former MPC members Julius and Lomax
  both in the papers this morning with hawkish views
• Investors now looking towards next weeks BOE minutes
  released by BOE. Next week we will also see a key announcement on the
  coalitions comprehensive spending review

EURO HEADLINES:

• In the Eurozone CPI for September M/M comes in as
  expected at 0.2%. The Y/Y figure is as expected at 1.8%
• Eurozone Trade balance for August comes in at -1.4B
  missing expectations of 0.8B. This data has come back much worse than
  expected.
• Euro data for Industrial Production rose yesterday by 1%
  in August after a 0.1% increase helping to give the single currency an added
  boost

US DOLLAR HEADLINES:

• US dollar is getting punished against most major
  currencies ahead of today's economic news. Lots of data due out this
  afternoon including Retail Sales and CPI.
• Yesterday US Trade balance for August came back at
  -$46.3b missing expectations of -$44.0b
• US Core Producer & Producer Prices both showed
  improvements whilst initial jobless claims rose to 462k amid expectations of
  445k

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