Mike Paterson’s daily Forex brief
Continuing concerns over the Eurozone and the US Fed’s FOMC minutes, released on Wednesday which suggested that they’re not in a rush for QE3, have given the Euro another tough 24 hours.
Yesterday we dipped on EURUSD to fresh two-year lows of 1.2165 which duly dragged the Euro down across the board with EURGBP once again trying to break lower but once again failing for the moment at least. 0.7880 is proving a tough level to crack but we’re not exactly flying higher either. EURUSD has buyers lined up at 1.2150 but sellers around 1.2620.
GBPUSD gave up a little more ground and we’ve been down to 1.5414 but overall the Pound is holding up in tight ranges. Â Buyers are reported around 1.5380-1.5400 but plenty of sellers above 1.5500 where it seemed comfortably camped earlier in the week.
Last night China released their latest growth figures which came in at 7.6% much in line with expectations but not as bad as some had feared.
Little in the way of data again but it’s Friday, and the 13th of the month too, so we might reasonably expect some end of week fun ‘n games but traders seem in no mood to push the boat out unless they have to. Could get some short-covering across the board but the weaker trend is still in place.
In the world of sport Aussie cricketer Brett Lee has hung up his international boots and cyclist Bradley Wiggins has extended his lead in the Tour De France after Stage 11 and remains on course to become the first ever British winner.
Have a great week-end where ever it takes you.
Interbank Rates 08:19 BST
Today’s Data: BST
10.00-UK – CB Leading Index
13.30-US – PPI
14.55-US – Michigan Consumer Sentiment
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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.