Mike Paterson’s daily Forex brief

We’ve seen a little bit of $ buying on the back of anticipated monetary easing today this side of the pond but markets are still on hold ahead of the interest rate decisions from the BOE and ECB.

The Old Lady is expected to keep rates on hold again but add another £50 billion to the QE, while traders have factored in a 0.25% rate cut from the ECB to 0.75%.

EURUSD is a little lower at 1.2522 having tested 1.2500 and GBPUSD is down at 1.5580 with EURGBP trading sideways still at 0.8040 (GBPEUR 1.2438).

Overall the Pound is little changed but lower versus the strengthening Aussie after the RBA left interest rates on hold the other night.

Yesterday’s eagerly expected testimony from former Barclays CEO Bob Diamond turned out to be a damp squib versus expectations but still opened the door a little on potential bombshells, and this definitely has more legs. It remains to be seen though whether MP’s rather than trained inquisitors are capable of extracting the full story.

Andy Murray marches onto the Wimbledon semis and today the International Football Association Board (no, I’ve never heard of ‘em either) vote on whether we will finally see the introduction of goal-line technology.

Let’s hope it’s not the only highlight of the day……..

Interbank Rates 08:50 BST

Currency Pair

Current

Overnight

High Low
EUR/USD 1.2522 1.2539 1.2512
GBP/USD 1.5580 1.5624 1.5570
EUR/GBP 0.8037 0.8043 0.8020
GBP/EUR 1.2440 1.2470 1.2431
GBP/CHF 1.4944 1.4981 1.4935
GBP/AUD 1.5167 1.5233 1.5155
EUR/CHF 1.2012 1.2016 1.2009
GBP/HKD 12.0791 12.1133 12.0714
EUR/HKD 9.7098 9.7448 9.6804
GBP/ZAR 12.7033 12.7507 12.6555
USD/JPY 79.63 80.10 79.55
GBP/CZK 31.7410 31.8570 31.6745

Today’s Data: BST

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

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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