Today's Interbank rates -
POUNDS TO US DOLLARS 1.5996
POUNDS TO EUROS 1.1581
POUNDS TO AUSTRALIAN DOLLARS 1.5903
EUROS TO US DOLLARS 1.3812
EUROS TO POUNDS 0.8634
EUROS TO AUSTRALIAN DOLLARS 1.3739
POUND HEADLINES:
- The focus in the UK today is on the release of the latest
Bank of England quarterly inflation report which will provide the backdrop
for the November MPC decision and offer some guidance to the near-term
policy outlook. - On the back of stronger than expected Q3 GDP, the 2010
full-year growth projection is likely to be revised slightly higher from
1.6% - Quantitative Easing remains entirely data-dependent
therefore an expansion of the QE programme remains likely. The bank will
need to see clearer evidence that the recovery is losing momentum before it
decides to pump more money into the economy.
- The calendar is very light with only French and Italian
industrial production numbers to keep the markets attention. - Following weaker than expected data from Germany on
Monday, we look for a small monthly rise in the French output in September
and a small decline in Italian data, but it is expected to register fairly
impressive growth rates as we approach year end. - French CPI has come in this morning as expected. German
wholesale prices for October have come in at -0.3% falling from Septembers
1% expansion.
- The pound has dropped over 2 cents as investors have
rushed to cover short dollar positions. - In trading this morning Sterling has clawed back up to
$1.60 but a report from the IMF is helping to keep sterling pegged at that
level. - The IMF has warned that as UK banks are heavily exposed
to the troubled members of the eurozone, economic growth would slow if these
banks suffered losses on their loans.
call me for a free quote.
Kris Charalambides
Tel: 0207 183 2790
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