IMS FX Morning Report 18-10-2010

IMS FX MORNING REPORT for Monday 18th October 2010

Today's Interbank rates -

POUNDS TO US DOLLARS 1.5875
POUNDS TO EUROS 1.1431
POUNDS TO AUSTRALIAN DOLLARS 1.6111

EUROS TO US DOLLARS 1.3887
EUROS TO POUNDS 0.8747
EUROS TO AUSTRALIAN DOLLARS 1.4093

POUND HEADLINES:

• GBP Rightmove Houseprices (MoM) for October up 3.1%
  versus -1.1% in the prior period. YoY Houseprices for October up 2.9% versus
  2.6% in the prior period. This is the biggest rise in 8 months.
• Major focus this week is the Governments public spending
  review along with the Bank of England Minutes both due out on Wednesday
• Sterling hit an 8 month high against the dollar on Friday
  although this was short lived as profit taking saw the price drop back below
  1.60

EURO HEADLINES:

• Sterling ended the week against the Euro on a more
  positive tone following comments from ECB president Trichet over the Bond
  buying programme remaining uncertain
• Having touched its highest point against the dollar since
  January, euro fell back below 1.40 with investors unwilling to risk leaving
  short dollar positions open over the weekend
• Economic calendar in Europe is quiet today with the only
  release coming from some secondary Italian current account

US DOLLAR HEADLINES:

• US September monthly budget statement shows a deficit of
  34.5bn vs. a deficit of 32bn as expected
• Data on Friday revealed that inflation failed to rise in
  September with the Core Consumer Price showing a figure of 0.0% against
  expectations of 0.1% further underlying the need for QE
• Bernanke's speech on Friday afternoon was the key event
  on Friday and his reiteration of weak underlying inflation led to another
  short round of dollar selling

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