Mike Paterson’s Daily Forex Brief

The IMF has been casting its net ever wider over the last couple of days and there’s been little for the markets to cheer about.

With the Asian region being given a reality check and the Eurozone back under their spotlight having given the UK short change the previous day we’ve seen a general mood of gloom prevail, and it’s risk-off time again.

broke down through strong support around 1.2900 and 1.2870 and we’ve seen a further dip in Asia to 1.2835 before finding a few ACB (Asian Central Bank) buyers and we’re currently back up to 1.2870. Offer now coming back in between 1.2880-1.2900 then above that at 1.2930.

The move down in the Euro has also seen EURGBP head lower again and we’ve been down through support at 0.8050 (1.2422) but has bounced back so far from the next support line at 0.8030.

EURAUD has been a prime mover, forcing traders to sell long positions and exacerbating both the Euro selling and current wave of Aussie dollar buying again, reflected in GBPAUD falling to 1.5623 having tried to breach 1.5900 on Monday.

EURCHF reportedly has large (SNB) interest to buy at 1.2100 which is giving the Euro a little support but equally the SNB are also thought to be selling EURUSD into the rallies to offload their EUR purchases.

GBPUSD had a little spike back up to 1.6040 yesterday but gave up those gains, and more, as 1.6000 eventually gave way. We’ve been down to 1.5975 so far before finding a few buyers but we can expect the rallies to be sold still.

Gold has given up the attack on $1800 as I suggested it might and has now fallen back through technical support at $1770. Analysts say this should trigger a significant move lower before any rally resumes. You read it here first, or second, or…

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

Little in the way of data today so we’ll wait to see if the IMF have any more gloom (justifiably) to pour over the parade, and await more news from the various meetings going on in Europe this week. Expect another scrappy day.

So the FA plans to introduce a code of conduct for the England footballers both on and off the pitch in what is a long-overdue initiative. The proof of the pudding will be etc……

And talking of long-overdue in the cause of better player behaviour when is FIFA going to introduce a 10 metre rule to move free-kicks forward, as in Rugby Union, to combat dissent…? Just saying.

Interbank Rates at 08:47 BST

Currency Pair

Current

Overnight

High

Low

EUR/USD 1.2873 1.2885 1.2835
GBP/USD 1.6014 1.6018 1.5975
EUR/GBP 0.8043 0.8052 0.8031
GBP/EUR 1.2433 1.2452 1.2417
GBP/CHF 1.5057 1.5075 1.5038
GBP/AUD 1.5627 1.5710 1.5623
EUR/CHF 1.2107 1.2117 1.2097
GBP/HKD 12.4156 12.4187 12.3854
EUR/HKD 9.9860 10.0013 9.9465
GBP/ZAR 13.8817 14.0765 13.8198
USD/JPY 78.26 78.36 78.18
GBP/CZK 31.0264 31.1411 30.9788

Today’s Data: BST

15.00-US – Wholesale Inventories

19.00-US – Federal Reserve Beige Book

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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