Mike Paterson’s Daily Forex Brief
Little change in prices after the BOE and ECB yesterday left interest rates and QE on hold as widely expected.
EURUSD did have a little run up to 1.2800 but failed to consolidate and what doesn’t go up invariably has to come back down and so it’s proved with lows of 1.2717 but currently back up to 1.2742.
Strong support is touted at 1.2700 in defence of a barrier option and we can only get excited should this break, otherwise we’re very much range bound still.
GBPUSD similarly had a look above 1.6000 but got giddy and we’ve been back down to test support around 1.5950, currently at 1.5972. Overall the Pound is going nowhere fast.
EURGBP also threatened to break lower through 0.7960 (GBPEUR up through 1.2562) but that too proved a step too far, for the moment at least. Resistance remains at 0.7900 and 0.8030 and support at 0.7960, 0.7925 and 0.7901.
UK Trade Balance data just out showed a slightly better than expected number, but it’s all relative and done little to entice any real price action. US data out later may have better luck but it’s looking more like a fickle Friday affair ahead.
And talking of fickle let’s hope the mighty Shrimpers can consolidate their hard-earned three points away from home on Tuesday with another glorious victory tomorrow.
Good luck to your teams in whichever sport you follow and have a great week-end.
Interbank Rates at 08:47 BST
Today’s Data: BST
09.30-UK – Trade Balance
11.00-UK – CB Leading Index
13.30-US – Import Price Index
14.55-US – Michigan Consumer Sentiment Index
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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.