BEST EXCHANGE RATES EUROS POUNDS DOLLARS

IMS FX MORNING REPORT for Monday 22nd November 2010

Today's Interbank rates -

POUNDS TO US DOLLARS 1.6080
POUNDS TO EUROS 1.1697
POUNDS TO AUSTRALIAN DOLLARS 1.6175

EUROS TO US DOLLARS 1.3747
EUROS TO POUNDS 0.8549
EUROS TO AUSTRALIAN DOLLARS 1.3828

POUND HEADLINES:

• Sterling has dropped against the euro following reports
  that the UK will be stumping up £7bn in loans to the Irish Republic. This
  was the first weekly decline against the Euro in four weeks.
• The British Pound did fall against the dollar on Friday
  but with news from Ireland over the weekend this has boosted risk appetite,
  therefore taking sterling back through $1.60 this morning.
• Second estimates of Q3 GDP will be released on Wednesday.
  A strong report will help boost the pound.

EURO HEADLINES:

• European shares and the euro have both risen in value, as
  markets welcomed the bail-out for the Irish Republic. It comes as Dublin is
  set to begin the formal process of applying for up to 90bn Euros of European
  Union-led loans agreed on Sunday.
• The total level of loans the UK will give the Irish
  Republic is expected to be about £7bn. Chancellor George Osbourne said "that
  it was in the UK's national interest to help the Irish Republic".
• In terms of the calendar today, eurozone consumer
  confidence and ECB President Trichets participation in a European parliament
  debate at 16:00 GMT will receive some attention.

US DOLLAR HEADLINES:

• Following Fridays speech to the ECB 'US Federal Reserve
  Chairman Ben Bernanke has criticised countries like China that run large
  trade surpluses'. He said that by buying dollars, these countries were
  hurting the US recovery & the global economy with it. He also defended the
  Feds policy of 'quantitative easing', which has been criticised by China &
  Germany.
• China, Germany & others have attacked the Federal Reserve
  in recent weeks for its decision to purchase another $600bn of US government
  debt in a bid to stimulate the US economy. They say that the policy will
  unfairly devalue the dollar in currency markets, and that could lead to
  inflation and asset bubbles elsewhere in the world. The Fed Reserve bought
  $2.169bn of treasuries on Friday as part of its asset-purchase programme
  aimed at lowering borrowing costs.
• With thanksgiving approaching and a light week for data
  the USD looks likely to stay confined to recent ranges against the major
  currencies.

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