Mike Paterson’s Daily Forex Brief
Another busy morning at my desk so a little late again with an update but, hey, these are moving markets anyway and you all know where to find me by now!
There’s been another move up for the Euro as traders renew their appetite for a little risk on the back of generally better than expected data from both sides of the pond.
EURUSD took out the 1.3020 and 1.3060 technical sellers, which then caused a rush for the exit doors for many short Euro positions and we’ve so far been up to 1.3124 in Asia and early European trading.
EURGBP finally broke out of its malaise and so far we’ve been up to 0.8139 (GBPEUR down to 1.12285) before finding a few sellers after the better than expected UK employment figures. Currently at 0.8115 (1.2317).
GBPUSD similarly struggled to keep up with the Euro’s charge but did have a rally after the jobs data and has held most of those gains so far.
Overall the Pound has found itself losing out to the better-preferred risk currencies such as the Aussie $ and has perhaps tellingly though also made losses against the Swiss Franc. AUDUSD has taken advantage of the current scenario to take out the sellers at 1.0300 and currently sits at 1.0330.
Gold, having touched one month lows of $1728 a couple of days ago, has staged a small rally but we need to get back above $1770 if we are not to see a further attack lower.
You could say traders are keeping a roof on it which was what the Polish authorities finally got around to doing to their football stadium at midnight last night, in what was surely a most appalling and bizarre lack of judgement and organization.
Second last night only to the racial and physical abuse dished out by the Serbian crowd to some of England’s U21 football team notably Danny Rose. There are calls now for a 10 year ban on the Serbian national team and UEFA must act strongly to deter this awful and archaic practice.
Interbank Rates at 08:47 BST
Today’s Data: BST
09.30-UK – Claimant Count Change / Unemployment Rate
13.30-US – Building Permits / Housing Starts
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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.