Mike Paterson’s Daily Forex Brief
We’ve seen further weakening in both the Yen and Swiss which is still keeping the Euro well supported in lively trading.
USDJPY has breached 90.00 for the first time since June 2010 while USDCHF has been up to 0.9390 and EURCHF has broken up through 1.2500, a level not seen since it collapsed in May last year.
There’s been the customary retracement in all these pairs as traders book a few profits ahead of the weekend and on the back of Chinese GDP data that came in under expectations but the trend remains intact.
EURUSD had another look at 1.3400 in late NY trading before falling back, but given the retracement elsewhere it still looks well supported around the 1.3320-30 area. Dips should still be bought.
EURGBP continues its journey higher and has so far been up to 0.8388 (GBPEUR down to 1.1919). As with the Euro pairs elsewhere it still looks well supported in the dips with the next key targets at 0.8400 (1.1905) and 0.8425 (1.1869).
GBPUSD looks soggy again after another failed attempt to break up through 1.6030 yesterday and so far this morning we’ve been down to 1.5925, accelerated just now by the release of weaker than expected Retail Sales data. Concerns over the UK economy and stance on Europe are still gathering pace.
But hey, it’s Friday and we know anything can happen and invariably does. Little in the way of data today so we’ll see what hits the newswires.
All I want to see hit the newswires tomorrow are reports of an overdue Shrimpers win.
As the snow starts to fall in Kent I wish you all a safe and warm week-end.
Interbank Rates at 08:48 BST
Today’s Data: BST
09.30-UK – Retail Sales
14.55-US – Michigan Consumer Sentiment
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 email@example.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.