Mike Paterson’s Daily Forex Brief

Not too much going on out there as traders await the outcome of today’s US Presidential Election and the closest contest in many a year but the Aussie $ has had another day in the sun as the RBA last night left interest rates on hold at 3.25%.

Whilst this was generally expected it wasn’t a straightforward call and the RBA cited higher inflation data as a good enough reason to stay cautious this time despite recent wobbly data from China.

AUDUSD has broken up through the strong resistance around 1.0400 that I’ve mentioned recently dragging EURAUD down 100 pips to 1.2247 and GBPAUD 110 pips lower to 1.5312.

EURUSD has remained on the back foot below 1.2800 but so far can’t find enough momentum to break decent support around 1.2750, while GBPUSD similarly struggles to get back above 1.6000 but can’t get down through 1.5950.

EURGBP unsurprisingly then has been in crab-like mode around 0.8000 finding it tough to get back through 0.8010 (1.2485) but yet not finding enough wheels to get down through 0.7985 (1.2525).

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

Perhaps today’s US Presidential Election will shake things up a bit but markets have no clear-cut strategy for a win by either candidate. In any event the money printing presses will be running for a while yet.

Andy Murray got his ATP Masters campaign off to satisfactory start despite losing the first set while World No 1 Djokovic, who’s had a few problems of late, came through easily in straight sets.

The Shrimpers do league battle again tonight desperate to pick up their first win in a while and there’s Champions League action again for those of you who prefer their football of a slightly less heady mix!

Interbank Rates at 08:42 BST

Currency Pair

Rates

EURUSD 1.2778
GBPUSD 1.5978
EURGBP 0.7998
GBPEUR 1.2503
GBPCHF 1.5091
GBPAUD 1.5328
EURCHF 1.2071
GBPHKD 12.3877
EURHKD 9.9078
GBPZAR 13.9402
USDJPY 80.16
GBPCZK 31.5912

Today’s Data: BST

11.00-EU – German Factory Orders

15.00-UK – NIESR GDP Estimate / US Presidential Election

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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