Mike Paterson’s daily Forex brief.

As the SNB introduces measures to weaken the rampant Swiss Franc the BOJ has also shown concerns over the strong Yen and come in overnight to intervene buying USDJPY, and driving it up almost 300 points. They have also called for G7 and G20 discussions over global currency imbalances.


Never a dull moment in these markets and the BOJ action drove the Euro higher as traders scrambled to buy back EURJPY positions but we've stalled at 1.4373 on EURUSD and fallen back over 100 points to 1.4256 as fears remain over Italian and Spanish debt problems.

EURGBP has peaked again around the 0.8750 resistance level (GBPEUR support at 1.1430) but has failed to make any impression as yet below the 0.8700 strong support area.

Elsewhere the Pound continues to present a mixed bag of frogs as GBPUSD first climbs to 1.6441 but falls back in line with EURUSD to 1.6342, GBPCHF consolidates around 1.2700 on the back of the SNB moves, while GBPAUD and GBPZAR are both higher as is GBPJPY, up 400 points after the BOJ intervention.

Gold is still well bid and equities remain on the back foot as traders try and make sense of the past few days……..

Today's main focus will be on the BOE and ECB interest rate decisions at 12.00 and 12.45 BST but as both are expected to remain unchanged we will once again be trying to glean any clues to future Eurozone policy from the ECB press conference at 13.30 BST.

All in all it promises to be another lively day out there but then, you know that by now huh?!!

Today's Data:

11.00-EU- German Factory Orders

12.00-UK- BOE Interest Rate Decision

12.45-EU- ECB Interest Rate Decision

13.30-EU- ECB Press Conference

13.30-US- Weekly Jobless Claims

Interbank Rates as of 08.37 GMT

Current Price

Overnight

High

Low

EUR/USD

1.4275

1.4373

1.4265

GBP/USD

1.6356

1.6441

1.6342

EUR/GBP

0.8725

0.8751

0.8714

GBP/EUR

1.1460

1.1477

1.1426

GBP/CHF

1.2725

1.2765

1.2625

GBP/AUD

1.5352

1.5365

1.5240

EUR/CHF

1.1104

1.1141

1.1016

GBP/HKD

12.6810

12.7470

12.6700

GBP/ZAR

11.0948

11.1443

11.0202

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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