Good morning,
The dollar pared its best quarterly gain since 2008 as technical indicators signalled the rally has been too rapid.
A gauge of the USD against 10 major peers reached its most overbought level yesterday on record going back to 2005. The USD has climbed at least 1.7 percent against all of its 16 most active counterparts since June 30 on prospects the Fed Reserve will boost borrowing costs next year. Aussie dollar & New Zealand dollar rallied, paring the worst monthly declines among Group of 10 currencies.
U.K. house prices fell for the first time in almost a year and a half in September, adding to evidence the property market is softening. The data underscore signs of a moderation in the U.K. market after the Bank of England tightened loan criteria to limit risks to financial stability and new mortgage checks came into force. A survey by property researcher Hometrack Ltd. last week showed London house prices fell for the first time in almost two years as prices stagnated nationally.
In the EU the focus today will on the euro inflation for September due later this morning at 10am. Although the euro has fallen sharply in recent weeks, the combination of weak growth, rising spare capacity and falling oil prices are expected to lower the flash headline CPI. Markets are expecting we could see the weakest outturn since late 2009.
MORNING MARKET RATES:
GBPEUR 1.2824
GBPUSD 1.6266
EURUSD 1.2681
GBPSEK 11.771
GBPAED 5.9745
GBPAUD 1.8597
EURGBP 0.7795
GBPJPY 177.96
GBPTHB 52.643
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 GBP AND LOOK AT SECURING EUROS 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