Mike Paterson’s daily Forex brief
Little change from yesterday’s opening levels but we’ve seen plenty of movement in the meantime as markets await tomorrow’s interest rate decisions.
The rally in EURUSD was capped by those sell orders I mentioned around 1.2820-30 and fell all the way back to 1.2727 before the usual suspects in Asia bought in the dip. EURGBP found early support yesterday and made an attempt on the top side but failed at 0.8288 ( GBPEUR 1.2065 ) and then it too dropped to the 0.8240 support line. GBPUSD has merely been an intermediary and moved little of note.
This morning we’ve seen the BIS and Middle East buying EURUSD but no one’s going to get too excited about a concerted move higher until 1.2830 breaks convincingly. Plenty of sellers around whatever the rally. The Aussie $ continues to find buyers with China snapping a few in this morning.
Gold has broken up through a strong technical line at $1641 and it now remains to be seen whether this move will gather pace to the next main target of $1740 or peter out once more and prove the early-year bears right.
UK trade balance data just out for November shows a deficit of Â£ 8.64 billion v – Â£ 7.98 billion in October. Forecasts were for –Â£ 8.4 billion so we’ve seen a small drop in GBP but nothing of note.
Later this morning we have the latest Eurozone GDP then another instalment of the EuroSoap when Merkel meets Monti, with a press conference due at 12.00 GMT.
Could be a long day……..
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