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.

FX Update

FX Update

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 £ 8.64 billion v – £ 7.98 billion in October. Forecasts were for –£ 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……..

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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