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.
Interbank Rates at 08:46 BST
Today’s Data: BST
11.00-UK- CBI Distributive Trades Survey
12.00-EU – German CPI
12.30-US – Personal Income/Spending
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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 firstname.lastname@example.org
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.