Mike Paterson’s daily Forex brief

The eagerly awaited Chinese GDP came in at + 8.1% compared to expectations of 8.4% and rumours of 9% and this immediately compounded traders fears coming as it did after disappointing weekly US jobs data.

EURUSD had climbed above 1.3200 after eventually taking out the BIS sell interest around 1.3150 but has since fallen back to, guess where, yep 1.3150 which now becomes the immediate short-term pivot line.

GBPUSD also had a little rally as the Greenback got sold but it too fell back after Chinese GDP and is down to 1.5920 where we walked in yesterday.

EURGBP found support at the usual 0.8230 level and popped its head above 0.8275 but failed to make any further impression as has been its way for some time now.

The Aussie $ took a knock on the back of the China data with AUDUSD falling back below 1.0400 but has since steadied above 1.0350 with GBPAUD back up to 1.5335 from 1.5265 lows.

This morning it’s been revealed that Spanish banks borrowed €316.3 billion in March, up dramatically from €169.8 billion in February and this has further undermined the Euro, which has just now dipped again as stock markets take a hit and is threatening stop-loss sell orders on EURUSD around 1.3140.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

Little in the way of data today but US CPI at 13.30 BST may have an impact. Apart from that it’s Friday, and it’s the 13th, and with many traders still on hols we could yet see some fireworks. Which is more than we can say about the highly anticipated North Korean long-range missile launch which fizzled out like a damp squib and plopped unceremoniously into the ocean.

Let’s hope the mighty Shrimpers don’t have such an inglorious end to the season eh? Have a great week-end out there.

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.

Comment Here!