Mike Paterson’s daily Forex brief

Well, this is going to be another brief report given the little action that we’ve seen once again, but as I’ve woken up with a stinking cold that’s no bad thing!

EURUSD still hasn’t broken out of range but GBPUSD has risen through 1.5550 on the back of a decent selling interest in EURGBP which is in danger of testing strong barrier option support at 0.8350 (GBPEUR resistance at 1.1976). Hearing that Middle East names were the GBPUSD buyers but there’s a few offers around these levels up to 1.5605 which may well cap any further rise for the moment, especially if 0.8350 holds on EURGBP.

AUD/USD has found a few option related sellers around 0.9980 with one of the names also reported to be a seller of EURUSD at 1.3050. The Aussie rallied overnight on the back of less than dovish RBA Minutes but we’re on that sell level again now as I type so we’ll see if it holds.

The German IFO Index came in a little better than expected at 107.2 but has caused little reaction so far, and Sweden have cut the repo rate by 0.25% to 1.75% as the economy slows down and the global picture gets gloomier.

Forex Brief Tues

FX Update

Little in the way of data again today so we’ll wait to see what traders want to do if anything but the topside looking vulnerable as I type.. GBPUSD testing those sell levels around 1.5605 and EURUSD looks like it wants to go up through 1.3050. Wow, it could get exciting!

I’m off to load up with cold remedies……..

Today's Data:

11.00-UK- CBI Distributive Trades Survey

13.30-US- Building Permits / Housing Starts

Interbank Rates as of 08:43 BST

Current Price

Overnight

High

Low

EUR/USD

1.3037

1.3046

1.2993

GBP/USD

1.5583

1.5584

1.5496

EUR/GBP

0.8366

0.8391

0.8359

GBP/EUR

1.1950

1.1965

1.1917

GBP/CHF

1.4579

1.4602

1.4517

GBP/AUD

1.5616

1.5671

1.5591

EUR/CHF

1.2198

1.2209

1.2170

GBP/HKD

12.0815

12.0823

12.0140

EUR/HKD

10.1100

10.1387

10.0409

GBP/ZAR

12.9437

13.0485

12.9080

USD/JPY

77.88

78.07

77.85

GBP/CZK

3.0266

3.0377

3.0231

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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