Mike Paterson’s Daily Forex Brief
After two days of gains we’ve seen some reality creep back into the Euro as escalating problems in the Middle East take their toll on stock markets and traders revert to a more cautious approach.
Having tried, and failed, to breach the strong resistance lines above 1.2800 EURUSD has fallen back overnight and again this morning in early European trading with lows so far of 1.2733.
EURAUD has been a prime mover having also failed to breach its own key resistance levels around 1.2400 and has fallen back to 1.2316, as has EURJPY which has dropped over 100 pips since yesterday’s highs as USDJPY failed to advance further through key 81.45 resistance and traders have been quick to lock in some profits.
EURGBP too has given up on its own charge higher and fallen back to 0.8024 (GBPEUR back up to 1.2460) having failed to breach resistance lines around 0.8080.
This fall back in EURGBP has been due in no uncertain terms to GBPUSD holding key support around 1.5850 that I’ve mentioned this week and has held solidly during the EURUSD retreat.
Euro concerns have been raised again by on-going disagreements between the IMF and EU leaders in sorting out Greece, apparently forgotten in the heady mix of the past two days, and the Bundesbank pouring more cold water on “hasty” banking union.
Little in the way of data today so we shouldn’t be expecting too much but hey, it’s Friday so who knows……..!
With England’s footballers losing on Wednesday it’s been the turn of our cricketers to feel the pain as India have piled on the pressure relentlessly in the First Test just now declaring on 521-8 with a superlative innings of 206 not out from 389 balls by young Pujara. England will have to face around 18 overs in the remainder of today’s play needing 322 as a first target to avoid the follow-on. Good luck lads!
And good luck too, of course, to the mighty Shrimpers and all your teams tomorrow as another week-end of great sport unfolds with England v Australia renewing battle at Twickenham tomorrow.
But finally, I must end this week’s updates by asking you all to remember a very dear friend, Fred Ridgeway, who has sadly left the stage for the last time having battled against Motor Neurone Disease this year.
Fred was a former FX broker who was laid off in 1995 at the age of 42. Never one to be beaten Fred turned to his first love of acting and, with the support of his family, quickly made a name for himself in the world of theatre and TV – most recently enjoying a highly successful run on Broadway with James Corden in One Man Two Governors, despite his illness.
I’m currently finishing an article on Fred’s remarkable story but in the meantime please raise a glass to a wonderfully decent and generous human being who showed us all that we really can fulfil our dreams if we want them enough.
Have a good week-end.
Interbank Rates at 08:47 BST
Today’s Data: BST
10.00-EU – Eurozone Trade Balance
14.00-US – TIC Net Long-Term Transactions
14.15-US – Capacity Utilization Rate
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Mike ‘Oscar’ Paterson has been in the Forex trenches for nearly three decades working as a senior Spot trader in London at UBS, Chief Dealer FX at the State Bank of Victoria and in charge of Spot CHF at Credit Suisse with a daily turnover in excess of $1.5 billion. Mike now works as an independent consultant providing a fully bespoke service to the corporate and private sectors in physical FX delivery as well as guiding those who wish to improve their currency trading. Mike also presents seminars and workshops and writes for a number of publications.
To contact Mike please call +0044 (0) 1732 700383 or email firstname.lastname@example.org
The views expressed above are those of the author and should not be taken as investment advice. MSP Foreign Exchange Services will have no liability for, or to, any persons executing trades based on the content above.