Today's Interbank rates -
POUNDS TO US DOLLARS 1.5781
POUNDS TO EUROS 1.1248
POUNDS TO AUSTRALIAN DOLLARS 1.5983
EUROS TO US DOLLARS 1.4030
EUROS TO POUNDS 0.8890
EUROS TO AUSTRALIAN DOLLARS 1.4210
POUND HEADLINES:
- Yesterdays Minutes revealed that the Bank of England was
split three ways over policy. Seven of its members voted for no change to
interest rates and no additional stimulus spending, while one person wanted
to see rates rise 'Sentance'. The ninth member, Adam Possen, voted to see QE
- the banks main stimulus measure - restart. This is the means by which the
bank puts more money into the economy. The Minutes also indicated that while
most MPC members did not see the case for further quantitative easing at
present, they did consider the chance it may be needed in the near future
had increased. Following the release of the banks minutes, the British
Chambers of Commerce (BCC) repeated its call for QE to be extended - The Government borrowed a record £16.2bn to plug the gap
in the public finances in September, figures from the Office for national
Statistics show. It was the highest borrowing figure for September on
record, and is unexpectedly up from the £14.8bn borrowed in September last
year. The Uk's total net debt is also the highest to date at 57.2% of GDP - Following yesterdays Spending Budget 'Chancellor George
Osbourne' unveiled the biggest spending cut since World war II with welfare,
councils and police budgets all hit. Pension age will rise sooner than
expected to 66 for Men and Women and will start in 2020, six years earlier
than expected. A new bank levy will also be brought in with full details
today. £81 billion will be cut from from public spending over the next 4
years. Mr Osbourne said the four years cuts were guided by fairness, reform
and growth - UK major banks mortgage approvals for September come in
as expected at 44k and UK retail sales for September M/M come in at 0.0%
missing expectations of 0.2%. The Y/Y figure is 1.8% missing expectations of
1.9%
- The growth in French Industrial Orders slowed down in
August after a bumper month in July, figures have shown. new manufacturing
orders, excluding heavy transport equipment rose 0.8% in August, after a
2.6% increase in July, the Insee statistical agency said. The rate at which
industry orders are taken is seen as a leading indicator of the health of
the economy - Eurozone PMI composite for October comes in at 53.4
missing expectations of 53.7. PMI services for same month also comes in
lower than expected at 53.2 missing an expected 53.7 - PMI manufacturing data for Eurozone (Oct) comes in
beating expectations of 53.2 at 54.1
- After a quiet week on the data front, US jobless claims
and the Philadelphia Fed Survey will be published today. Last week saw a
sharper than expected rise in jobless claims to 462k but is expected to be
largely reversed this week, with claims forecasts to fall back to 455k - US dollar initially recovered yesterday on Geithers
comments, but underlying weakness remains in anticipation of QE expansion at
the November 3rd FOMC - This afternoon Feds Bullard speaks in St Louis and could
give greater insight into the measure to be taken to stimulate the
struggling US economy
call me for a free quote.
Kris Charalambides
Tel: 0207 183 2790
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