POUNDS TO DOLLARS POUNDS TO EUROS

IMS FX MORNING REPORT for Thursday 4th November 2010

Today's Interbank rates -

POUNDS TO US DOLLARS 1.6176
POUNDS TO EUROS 1.1360
POUNDS TO AUSTRALIAN DOLLARS 1.6004

EUROS TO US DOLLARS 1.4239
EUROS TO POUNDS 0.8802
EUROS TO AUSTRALIAN DOLLARS 1.4088

POUND HEADLINES:

• The UK service sector grew more strongly than expected in
  October which helped boost the pound yesterday cutting its losses from the
  previous days weaker than expected construction data. The strong data
  diminishes remaining hopes the Bank of England may announce further monetary
  stimulus on thursday.
• The Bank of England is anticipated to maintain its
  current policy in November, and the rate decision could spark a bullish
  reaction in the British pound as investors scale back speculation for
  further quantitative easing. Unlike the Fed, today's BOE meeting is unlikely
  to throw up any surprises with most members likely to maintain current
  policy.
• UK Halifax house prices for October have come in better
  than expected revealing that prices have risen by 1.8% over the previous
  month beating expectations of a 0.6% rise.

EURO HEADLINES:

• In the Eurozone today, it is likely that the European
  Central Bank will keeps its main refinancing rate on hold at 1%.
• ECB's Trichet could make reference to a prospective
  weaker pace of activity in Q3 compared with the healthy 1%
  quarter-on-quarter pace seen in Q2. Preliminary Q3 GDP figures for the Euro
  area are released on the 12th November.
• Eurozone PMI services data for October has come in this
  morning at 53.3 marginally beating expectations of 53.2. German, French and
  Italian PMI figures all came back slightly lower than expected.

US DOLLAR HEADLINES:

• FOMC maintains key interest rate at 0.25%. Federal
  Reserve Bank are to expand asset purchases by $75bn per month, a total of
  $600bn by the end of June
• The initial market reaction has been to sell the dollar,
  the Euro and Pound are both trading higher this morning against the dollar.
  Sterling is now pushing its nine-month high up above 1.6150.
• Latest US jobless claims and preliminary unit wage cost
  figures for Q3 are due today. Expected is a modest increase to 440k while
  unit labour costs are expected to show a slightly firmer pace of Q3 economic
  growth.

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