IMS FX Morning Report 16-11-2010

IMS FX AFTERNOON REPORT for Tuesday 16th November 2010

Today's Interbank rates -

POUNDS TO US DOLLARS 1.6064
POUNDS TO EUROS 1.1798
POUNDS TO AUSTRALIAN DOLLARS 1.6374

EUROS TO US DOLLARS 1.3613
EUROS TO POUNDS 0.8475
EUROS TO AUSTRALIAN DOLLARS 1.3878

POUND HEADLINES:

• The Pound has reached a seven week high against the euro
  which is suffering uncertainty over whether Ireland will accept emergency
  funding.
• UK RPI for October M/M comes in at 0.2% missing
  expectations of 0.3%. The Year on Year figure is 4.5% missing expectations
  of 4.6%.
• UK CPI for October M/M comes in at 0.3% beating
  expectations of 0.2%. The Year on Year figure is 3.2% surpassing
  expectations of 3.1%.

EURO HEADLINES:

• The Euro Group meeting this afternoon will be the focus,
  and the market will no doubt be awash with rumours ahead of it. It seems
  increasingly likely that Ireland will access the EFSF to help further
  re-capitalise the banks, in the hope this will stabilise markets.
• French non-farm payrolls for the 3rd Quarter (Q/Q) comes
  in at 0.3% beating expectations of 0.2%.
• Italian CPI for October M/M comes in as expected at 0.2%.
  The Y/Y figure also met expectations at 1.7%.

US DOLLAR HEADLINES:

• The US currency continued to receive support from rising
  treasury yields, which are being buoyed as investors flee from the
  developing debt crisis in the eurozone.
• US Retail Sales in October came back yesterday higher
  than expected but the gain from this was offset from a larger than expected
  drop in the Empire State Manufacturing Index.
• At present the pound is lower on the day but is yet to
  drop below the $1.60 level. US Inflation figures are due later this
  afternoon.

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