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).
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
Today’s Data: BST
11.00-EU – German Factory Orders
15.00-UK – NIESR GDP Estimate / US Presidential Election
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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 email@example.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.