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.
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.
10.00-EU- Eurozone Retail Sales
13.30-US- Non-Farm Payrolls / Unemployment Rate / Average Hourly Earnings
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