Mike Paterson’s Daily Forex Brief

We’ve seen little in the way of any major moves in the past 24 hours as traders consolidate recent trading activity waiting for more clues but decent Chinese Manufacturing PMI data has given some reason for cheer.

Also out last night were comments from the Japanese Deputy Finance Minister that USDJPY at 100 is not as problem and we’ve seen a sell-off in the Yen again giving support to the Euro as well.

USDJPY has moved up to 89.41 from 88.41 lows dragging EURJPY up to 119.31 before retreating. EURUSD therefore once again made an attempt to get through 1.3350 before failing once more and we’re coming lower as I type, testing 1.3300 again. Weak Eurozone data is probably the cause.

EURGBP has baulked at a move through 0.8425 (1.1869) and is also falling back in early European trading while GBPUSD still looks heavy on the rallies with sellers emerging again above 1.5860. The trend line down to 1.5750 that I talked about is still in place but 1.5800 is proving a huge support point so far.

News out yesterday that German Chancellor Merkel is offering talk with the UK on re-negotiating their position in Europe has had no impact. But the UK and Pound’s real test comes tomorrow with the first reading of Q4 GDP.

A few bits of data out today (see below) but e should see more of the same unless we get a news bomb.. Expect more consolidation if not.

England’s cricketers go down in the Indian ODI series and Chelsea get beaten by Swansea. But the big talking point is all on the Hazard/ball boy incident.

With reports that the self-named “King of the ball-boys “ had been facebooking his intention to waste time last night, who’s side are you on??

MSPFX forex website

Interbank Rates at 07:48 BST

Currency Pair

Rates

EURUSD 1.3327
GBPUSD 1.5835
EURGBP 0.8417
GBPEUR 1.1880
GBPCHF 1.4727
GBPAUD 1.5054
EURCHF 1.2394
GBPHKD 12.2768
EURHKD 10.3340
GBPZAR 14.3249
USDJPY 89.34
GBPCZK 30.4040

Today’s Data: BST

09.30-UK – BBA Mortgage Approvals

11.00-UK – CBI Distributive Trades Survey

13.30-US – Weekly Jobless Claims

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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