USD FORECAST November 2009

The USD forecast published by Lloyds TSB Corporate Markets in November 2009 predicts that the USD will be appreciating against the EURO as we move into 2010.

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In particular, Lloyds TSB predicts that the EUR/USD exchange rate will end the fourth quarter of 2009 with a midpoint of 1.45, and decline further to 1.37 in the first quarter of 2010. The forecast has the EUR/USD exchange rate continue declining throughout 2010 averaging 1.30 and 1.27 in the second and third quarters of 2010 and ending next year at 1.25 in the fourth quarter of 2010.

Lloyds TSB's favorable USD forecast against the EURO is based on the expectation of a stronger growth of the American economy, which in the base case scenario is predicted to be higher than 2%, at a time the advanced economies as a whole are predicted to grow at an average rate of 1.3%.

Furthermore, US interest rates are predicted to rise faster than interest rates in other advanced economies because they are currently considerably lower. Lloyds TSB's USD forecast predicts that US interest rates are likely to be in line or even higher than euro interest rates by the end of 2010. In particular, it is predicted that by the fourth quarter of 2010 the US - 3-month (offer) rate will rise to 2.17% while the respective Euro 16 rate will rise to 1.33%.

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