MORNING REPORT TUESDAY 12^TH AUGUST 2008

Good Morning,

Sterling continued to lose ground against the new found support for the US Dollar yesterday, trading to lows of 1.89 75 this morning. The Dollar has benefited from a weakened Euro following a downturn in sentiment after the ECB’s admission of expectations of an economic slow down. The Euro has retreated to lows of 1.4820 against the US currency and Dollar support is backed by a lower oil price. The UAE Dirham has followed the stronger Dollar and is now trading at 7.00 against Sterling from previous levels of 7.40, only 3 weeks ago.

The price of oil which has lowered from highs of $147 to below $115 will be of benefit to all global economies, helping to reduce the inflationary pressures. Speculation of a global recession has been voiced many times and all the bad news regarding the credit crunch, failing Housing market and massive right-down losses has flowed from the US , with most of their bad news already known and accepted. It will take a along time for the US economy to make a recovery but they already have low interest rates to assist recovery whereas the UK, Europe and Asia still have to address the problems of a faltering economic output.

Michael Ince

Archive News

This commentary is generic and may not suit all circumstances. Before taking any action, we recommend either contacting your trader for guidance or obtaining independent financial advice. The information in this document was obtained from sources believed to be reliable but its accuracy and completeness cannot be guaranteed. The views and recommendations in this communication are typically short term trading views. Comments constitute views at the time of writing and are subject to change without notice. The rates shown are all indications. For specific quotations, please contact your usual trader. This document is not intended as an offer, solicitation or recommendation to buy or sell.