Mike Paterson’s daily Forex brief
We’ve seen a break higher on the Euro as traders give up on recently acquired short positions having seen no real momentum on the downside and ahead of a raft of data today.
EURUSD has been up to 1.2386 so far having broken up through the 1.2325 pivot level I mentioned yesterday. I keep saying these are thin markets and so it’s proving. Volumes won’t be high here but it’s enough to freak out short term traders caught on the wrong side.
FX markets are always as fickle as fickle can be and it’s as likely to trade back down below 1.2300 as it is to break through the next key resistance lines around 1.2435 but for the moment the bears are on the back foot.
The rally in the Euro has been seen across the board with EURGBP breaking up through the 0.7850 resistance line to so far hit 0.7884 ( GBPEUR down to 1.2682 ) and EURAUD a major play up to the highs of last week around 1.1760, which has kept a lid on the Aussie $ generally.
GBPUSD has been carried higher in the EURUSD slip stream and is holding gains above 1.5700 as I type but overall the Pound has been a mixed bag once again (see rate table below).
A busy morning for data with UK inflation numbers out at 09.30 BST then Eurozone GDP and Industrial Production plus the key German ZEW stats at 10.00 BST. This afternoon brings US CPI and PPI plus Retail Sales.
So it should be a lively day with tests both sides.. And talking of Tests the last of the three of the cricket variety versus South Africa starts this Thursday at Lords without Kevin Pietersen who has been dropped for allegedly texting his SA compatriots some derogatory remarks about his skipper and team mates.
Why anyone is remotely surprised by this cricketing genius but spoilt brat who enjoys throwing his toys out the pram is beyond me. Someone needs to get hold of him and give him a good slap of common sense.
Hey ho, back to the trading screens!
Interbank Rates 08:35 BST
Today’s Data: BST
09.30-UK – CPI / RPI
10.00-EU – Eurozone GDP / German ZEW Economic Sentiment / Eurozone Industrial Production
13.30-US – CPI / PPI / Retail Sales
15.00-US – Wholesale Inventories
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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.