euros dollars pounds best exchange rates best currency rates

IMS FX DAILY MORNING REPORT - Monday 7th February 2011

Today's Interbank rates -

POUNDS TO US DOLLARS 1.6128
POUNDS TO EUROS 1.1879
POUNDS TO AUSTRALIAN DOLLARS 1.5912

EUROS TO US DOLLARS 1.3578
EUROS TO POUNDS 0.8417
EUROS TO AUSTRALIAN DOLLARS 1.3402

POUND HEADLINES:

• The MPC decision on Thursday obviously casts a shadow over the market. The 20% odds of a rate hike will appeal some investors to hold on to their coveted long positions in the hope that the MPC does catch the market cold.
• December industrial production data are published the same day, where forecasts stand at +0.4% month-on-month.
• BRC retail sales are due tomorrow (for January so first read of VAT impact).

EURO HEADLINES:

• The ECB's Nowotny allegedly 'accidentally' disclosed the ECB's updated CPI forecast one month ahead of publication, but it is ECB colleague Weber who will steal the spotlight today. Though Trichet seemed to backtrack last week from his (hawkish) January council comments, Me Weber has been cast in an uncharacteristic conciliatory position and so it may fall to the Bupa president to pour more cold water on bubbling rate hike expectations potentially taking out a few more EUR longs.
• Market attention today turns to German factory orders data for December, where we look for a month-on-month decline of 1.3% following a hefty 5.2% increase in November.
• European Sentix Investor Confidence for February comes in at 16.7 beating expectations of 14.0

US DOLLAR HEADLINES:

• Focus will be on global rebalancing, with both China and the US due to release their latest external trade figures. The data are expected to make for mixed reading. While China's trade surplus is forecast
  to show a further decline, there is also a clear risk of a spike in the US trade deficit as sever weather disruption(clearly evident in last week's payrolls data) temporarily depresses US exports.
• US unemployment fell in January to 9% from 9.4%. It is the second such monthly fall, after unemployment fell from a rate of 9.8% in November.
• This afternoon we have NFIB small business Optimism Index in the US.

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