Mike Paterson’s daily Forex brief

Euro remains under pressure as the ECB does nothing to help and the markets await NFP data.

Yesterday the ECB had the opportunity and the will of the markets, to do something to help ease a little pressure in the Eurozone and decided instead to do nothing, citing inflation concerns as one of its main reasons.

This argument holds little credibility in these unprecedented times and the Euro has rightly remained under pressure despite a little short-covering immediately after the event yesterday.

EURUSD appears to have a few buyers around 1.3120 but yesterday’s small rally was rightly unconvincing, while EURGBP tested new recent lows at 0.8102 (GBPEUR up to 1.2342 before finding a break of the strong 0.8100 option related support a step too far at this time.

EURAUD and EURJPY are also lower and traders seem happy to sell rallies on both these pairs too.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

GBPUSD has strong bids at 1.6150 but offers above 1.6200 prevail for the moment too, but today’s US Non-Farm Payroll data will hopefully liven things up a bit, quite apart that it’s Friday and the week-end beckons.

Talking of which, it’s edge of your seats time tomorrow for real football fans. Nope, not the FA Cup Final but the final day of the League 2 season, which might yet see the mighty Shrimpers gain automatic promotion if results go our way. It’s a long shot but hey, over the years we’ve learned to live in hope. It’s what we do best!

Have a great week-end wherever it takes you.

Today’s Data:

10.00-EU- Eurozone Retail Sales

13.30-US- Non-Farm Payrolls / Unemployment Rate / Average Hourly Earnings

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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