Mike Paterson’s daily Forex brief

We've seen another quiet 24 hours in the absence of any fresh data or news, but with a raft of info out today we should at least see a little more action even though traders still at their desks seem happy to take a breather right now.


EURUSD continues to find buyers in the dips and this morning we've seen a move up to 1.4445, dragging with it EURGBP to 0.8749 (GBPEUR down to 1.1430). Talk of EURUSD sellers around here with stop-loss buying above 1.4460 which if seen should push us toward 1.4500, the top of the supposed range, where we should expect fresh sellers and our friend in Asia to re-appear. Could really kick off if it goes through and accelerates Euro gains. Eurozone data out this morning could have some part to play in that.

The BOJ have warned that any further rise in the Yen will have serious negative impact on the Japanese economy but have so far failed to back that rhetoric up with any further intervention. The SNB are expected to maintain liquidity operations in the forward CHF market.

In lack-lustre trading the Pound has done little of note but is generally weaker in a mixed bag still.

Gold has risen to new record highs again this time breaking $1900 to reach $1912 before falling back on profit taking. This is a whopping $400 increase since July 1st. Current buying interest seems to be based on Fed Chairman Bernanke announcing QE3 liquidity measures at his Jackson Hole speech this Friday but the jury remains out as to the certainty of this.

Talk this morning that China has been in to buy NZD on top of their recent AUD purchases. The Kiwi has certainly had a lift from somewhere.

No such help required for our cricketers who duly wrapped up a 4-0 series win against India yesterday with The Little Master 9 runs short of his landmark 100. Time to bask in the glory of being world number 1 now until the hard work of the winter tours begin but there's a few ODI matches to enjoy before the summer finally departs for southern climes if indeed it ever arrived ?

Today's Data:

Weekly Economic Calendar-HERE

Interbank Rates as of 08.16 BST

Current Price

Overnight

High

Low

EUR/USD

1.4441

1.4445

1.4353

GBP/USD

1.6517

1.6524

1.6447

EUR/GBP

0.8742

0.8749

0.8715

GBP/EUR

1.1435

1.1476

1.1443

GBP/CHF

1.3020

1.3038

1.2969

GBP/AUD

1.5736

1.5857

1.5720

EUR/CHF

1.1361

1.1371

1.1313

GBP/HKD

12.7980

12.8110

12.7520

GBP/ZAR

11.8216

11.9079

11.7930

Agree or disagree? Then please leave a comment in the box below or contact me by e-mail.

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 mike.paterson@economicvoice.com
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.

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