Euros and Dollars Best Currency Exchange Rates

IMS FX MORNING REPORT for Tuesday 7th December 2010

Today's Interbank rates -

POUNDS TO US DOLLARS 1.5785
POUNDS TO EUROS 1.1817
POUNDS TO AUSTRALIAN DOLLARS 1.5868

EUROS TO US DOLLARS 1.3358
EUROS TO POUNDS 0.8462
EUROS TO AUSTRALIAN DOLLARS 1.3428

POUND HEADLINES:

• Disagreement between Eurozone ministers yesterday put
  further pressure on the euro, allowing the pound to push back above 1.18
  where it is continuing to hold this morning. GBP has so far failed to really
  take advantage of the combination of weaker US data and Eurozone problems,
  but certainly looks preferable to both the Euro and Dollar after the last
  few days.
• UK manufacturing production for October month-on-month
  has come back at 0.6% beating expectations of 0.3%. The year-on-year figure
  is 5.8% beating expectations of 5.4%.
• UK industrial Production for October month-on-month comes
  in at -0.2% missing expectations of 0.3%. The year-on-year figure is 3.3%
  missing expectations of 3.9%.
  

EURO HEADLINES:

• The Eurozone's financial safety net is large enough for
  now, a meeting of the groups finance ministers said. Jean-Claude Juncker,
  said the 750bn euro backstop was the right size.
• The Irish Republic will take further steps to address its
  economic problems with more detail on its four-year budget plans later on
  Tuesday afternoon.
• The pound did make half a cent gain against the euro
  yesterday following disagreements between EU finance ministers fuelling
  fears that the debt crisis will remain unresolved in the short term.

US DOLLAR HEADLINES:

• Euro weakness is continuing to spur a stronger dollar but
  comments from Fed Chairman Bernanke have eased demand for the US Dollar. In
  a speech yesterday Bernanke said that the Fed may expand bond purchases
  beyond the $600bn announced last month to spur growth.
• Bernanke added that a return to recessions "doesn't seem
  likely," but this has not stopped the dollar dropping slightly this morning.
• The USD looks likely to move with risk appetite today,
  given no significant US news on the calendar.

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