IMS FX Morning Report 25-10-2010

IMS FX MORNING REPORT for Monday 25th October 2010

Today's Interbank rates -

POUNDS TO US DOLLARS 1.5734
POUNDS TO EUROS 1.1205
POUNDS TO AUSTRALIAN DOLLARS 1.5807

EUROS TO US DOLLARS 1.4042
EUROS TO POUNDS 0.8924
EUROS TO AUSTRALIAN DOLLARS 1.4107

POUND HEADLINES:

• Sterling has been weakening against all major currencies
  following speculation of Quantitative Easing and poor UK retail sales data
  last Thursday. Tomorrows GDP will have a big impact on market expectations
  of QE
• Bank of England MPC member Paul Tucker is scheduled to
  speak at 12.15pm today at the CBI annual conference. His comments will be
  closely scrutinised ahead of next weeks monetary policy meeting where the
  key question is whether the committee will vote for more quantitative easing
  policy measures to support the economy. MPC members Adam Possen and Charles
  Bean also speak later this week
• UK BBA loans for house purchase for September comes in
  this morning at 31,104 beating expectations of 31,000

EURO HEADLINES:

• The EUR/USD breaks through 1.4050 level that had
  restricted the rebound last week. The Euro remains probably the least likely
  of the major currencies to have its upside restricted by official action
• Eurozone Industrial new orders for August M/M comes in at
  5.3% beating expectations of 2.2%. The Y/Y figure is 24.4% beating
  expectations of 19.3%
• Italian Retail Sales data on Friday last week saw August
  figures come back as expected at 0.0% along with very strong German data
  which helped push the Euro higher against all majors

US DOLLAR HEADLINES:

• The US dollar has hit a 15 year low against the Yen after
  the G20 nations agreed to avoid a currency war. The weekend talks held in
  South Korea saw the Group of 20 major advanced and developing nations, agree
  to avoid competing to lower their currencies
• This afternoon from the US we have existing home sales
  for September followed by Dallas Fed Manufacturing Activity for October
• Focus will be the US 3rd quarter GDP figure on Friday.
  Ahead of the Feds November 3rd meeting this figure will likely play a
  significant role in determining whether stimulus is needed
  

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