Mike Paterson’s Forex Update
BOE leaves interest rates at 0.5% and QE at Â£375 billion. ECB leaves interest rates at 0.75%. Depo rate at 0%.
ECB President Draghi gave little away at the press conference but remains cautious about inflation and was understandably extolling the virtues of the new OMT bond buying programme to help steady he debt-ridden Eurozone ship.
Traders shouldn’t have expected anything else really but have continued to back the Euro and we’ve seen EURUSD just take out a supposed barrier option at 1.3000 before falling back slightly.
Similarly EURGBP has made fresh recent highs at 0.8052 before stalling.
GBPUSD remains in the doldrums around 1.6140 and the Pound overall continues to be a mixed bag (see rate table below).
US weekly jobless claims came in near target so it leaves the FOMC Minutes this evening at 19.00 to produce any more fireworks for today.
Interbank Rates at 15:12 BST
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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 firstname.lastname@example.org
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.