Mike Paterson’s Daily Forex Brief

US markets will remain again today as the East Coast last night was ravaged by Hurricane/Cyclone/Storm ( take your pick ) Sandy that has caused widespread damage, power cuts, flooding and tragically been responsible for at least 13 people dead so far.

Markets elsewhere have remained in almost apologetic mood and we’ve seen little change with EURUSD finding good support around 1.2880 and currently back up to 1.2936. GBPUSD has traded tightly too between 1.6020 and 1.6074 with the Pound overall continuing to give up the gains of late last week.

EURGBP is finding technical, as well as natural month-end, and has continued to drift higher to 0.8064 (GBPEUR 1.2401).

Last night the Bank of Japan left interest rates on hold as expected but increased the amount of QE by 11 trillion yen to a total of 91 trillion yen.. Traders reacted by selling USDJPY and generally buying back their short-Yen positions as the increased asset buying was well anticipated and factored in.

Little in the way of data , so we can expect another scrappy affair in tight ranges.

In the world of sport KP’s return to the England cricket fold is complete as he’s picked for today’s opening tour game against India A, and investigation continues into the allegedly racist language used by football referee Mark Clattenburg. Seems like the evidence provided by his assistants, who hear every word on their earpieces, will be crucial here but it’s yet another stab to the heart of our beautiful game.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

Interbank Rates at 08:46 BST

Currency Pair

Rates

EURUSD 1.2936
GBPUSD 1.6054
EURGBP 0.8060
GBPEUR 1.2407
GBPCHF 1.5003
GBPAUD 1.5471
EURCHF 1.2090
GBPHKD 12.4466
EURHKD 10.0246
GBPZAR 13.9151
USDJPY 79.39

Today’s Data: BST

11.00-UK- CBI Distributive Trades Survey

12.00-EU – German CPI

12.30-US – Personal Income/Spending

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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