Good Morning
Domestically today we have the construction output figures for the UK. After four consecutive quarters of growth, the recovery in the UK construction stalled in Q2. Markets still appear to be unsure as to why this happened but are predicting output to be up 0.6%, signalling a strong start to Q3.
An interesting read reported earlier that the pound already suffering its worst month in more than a year, has the potential to tumble 10 percent should the Scots vote for independence from the UK, according to economists surveyed on Bloomberg. They say a victory by Scottish First Minister Alex Salmond’s Yes campaign would mean a 5 percent to 10 percent slide within a month. Sterling is already down 5.5 percent from a five year high in July, and touched its lowest level in 10 months this week as momentum for the separatists increased.
The result of the Sept 18 vote is on a knife edge, with a YouGov Plc poll released yesterday putting support for the Yes campaign at 48 percent versus 52 percent for those wanting to keep the 307-year-old union.
In the US today the August retail sales data will give the latest reading on the strength of the US economy in Q3. While most US data has surprised on the upside, July retail sales were disappointing. They failed to match the stronger spending signals given by recent reports of high street spending and auto sales.
In Europe, July industrial production is scheduled today. It is likely to show a strong rebound after proving short over the last two months. Early released data today showed that Germany posted a rise of 1.9% and French output also grew. These figures are Euro positive and an indication for euro growth although with the positive news primarily in Germany, it suggests that growth across the euro area may be diverging.
MORNING MARKET RATES:
GBPEUR 1.2578
GBPUSD 1.6254
EURUSD 1.2921
GBPSEK 11.602
GBPAED 5.9715
GBPAUD 1.7945
EURGBP 0.7948
GBPJPY 174.25
GBPTHB 52.336
GBPCHF 1.5204
Please contact me to discuss SPOT pricing, FORWARD pricing or alternatively placing MARKET ORDERS at pre-desired rates.
P.S. WHY NOT TAKE ADVANTAGE OF THE STRONG USD AND LOOK AT SECURING GBP ON A FORWARD CONTRACT FOR UP TO 2 YEARS IN ADVANCE. WE ONLY REQUIRE A 3% GBP DEPOSIT TO SECURE A RATE GIVING YOU PEACE OF MIND AGAINST RATE FLUCTUATIONS.
Kris Charalambides
Senior Account Manager
kris@imsfx.co.uk
www.imsfx.co.uk
Direct Dealing Line : 0207 183 7928
Dealing Desk : 0207 183 2790