BEST EURO RATES BEST DOLLAR RATES

IMS FX MORNING REPORT for Tuesday 9th November 2010

Today's Interbank rates -

POUNDS TO US DOLLARS 1.6135
POUNDS TO EUROS 1.1593
POUNDS TO AUSTRALIAN DOLLARS 1.5910

EUROS TO US DOLLARS 1.3917
EUROS TO POUNDS 0.8625
EUROS TO AUSTRALIAN DOLLARS 1.3723

POUND HEADLINES:

• RICs house price balance for October came back at -49%
  versus -39% which was expected and -36% in the prior period.
• Following the release of the UK RICs house price survey
  and BRC retail sales monitor overnight, attention turns to Septembers
  Industrial Production and Trade Data. UK Industrial Production for September
  month-on-month came in as expected although the year-on-year figures have
  come back better than expected at 3.8% beating 3.6% forecasted.
• The National Institute for Economic & Social Research
  (NIESR) will also release its unofficial UK GDP estimate for October. Major
  interest for markets, however, will be tomorrows Bank of England Inflation
  Report which will provide an update of latest growth & inflation
  projections.

EURO HEADLINES:

• Weaker German Industrial production yesterday helped
  maintain the Euro negative tone even though the Greek elections were, on the
  face of it, not a new negative for the Euro.
• In the absence of any good news from Europe the lack of
  confidence in the European periphery will continue to encourage position
  reduction
• German CPI for October M/M comes in as expected at 0.1%.
  The Y/Y figure also met expectations coming in at 1.3%.

US DOLLAR HEADLINES:

• The dollar is beginning to benefit now that the
  uncertainty surrounding the US mid-term elections and Feds quantitative
  easing has been lifted.
• The market has been focused on the Feds policy for the
  past few months that all selling pressure has been focused on the dollar,
  but now that we know what is happening in terms of QE, the market is
  refocusing elsewhere.
• The euro has fallen against the dollar on Monday as yield
  spreads on Irish, Greek and Portuguese government bonds widened over their
  German counterparts with investors concerned with budget problems in Ireland
  in particular.

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