best exchange rates for pounds to euros

IMS FX MORNING REPORT for Thursday 23rd December 2010

Today's Interbank rates -

POUNDS TO US DOLLARS 1.5393
POUNDS TO EUROS 1.1753
POUNDS TO AUSTRALIAN DOLLARS 1.5334

EUROS TO US DOLLARS 1.3097
EUROS TO POUNDS 0.8508
EUROS TO AUSTRALIAN DOLLARS 1.3046

POUND HEADLINES:

• The Bank of England's Monetary Policy Committee (MPC) has split three ways again over interest rates and quantitative easing (QE). Minutes of the MPC's December meeting showed that one of its none members again wanted QE to be expanded, while another continued his call for interest rates to rise to 0.75% from 0.5%.
• However, eight MPC members voted for both rates and QE to stay unchanged. The banks key interest rate has been kept at 0.5% since March 2009.
• The most recent figures showed that UK inflation - as measured by the consumer prices index (CPI) - rose to 3.3% in November from 3.2% in October. The CPI inflation rate has now remained above the governments 2% target by one percentage point or more for 12 months.

EURO HEADLINES:

• The Greek parliament has approved next years budget, bringing in sweeping austerity measures. The budget imposes more spending cuts and tax rises, as required by the European Union and the International Monetary Fund in exchange for a bailout to tackle the country's debts.
• Greece needed to approve the budget to continue to receive a $144bn bailout fund created by European countries and the IMF.
• France Producer Prices come in at 0.4% month-on-month and 4.5% year-on-year versus 0.4% month-on-month and 4.4% year-on-year expected. French Consumer Spending comes in much better at 2.8% month-on-month and 1.5% year-on-year.

US DOLLAR HEADLINES:

• The US economy grew at an annualised pace of 2.6% in the third quarter of 2010, slightly faster than the previous estimate of 2.5% figures yesterday revealed. However, the rate was lower than expectations. Last month, the Fed said it would pump $600bn into the economy. The policy, dubbed QE2 because it is the second round of quantitative easing , is designed to boost the economy's fragile recovery.
• US house price index month-on-month for October has risen 0.7% versus -0.2% expectation.
• Existing home sales for November has risen by 4.68 million versus 4.75 million expected. Sales were 4.43 million in October. And lastly, US existing home sales month-on-month for November rise 5.6% versus 7.1% expected. Sales have fallen 2.2% in October

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Kris Charalambides

FX Broker

kris@imsfx.co.uk

www.imsfx.co.uk

Tel: 0207 183 2790