Mike Paterson’s daily Forex brief

Good two-way business in the past 24 hours, but we’ve seen the Pound hold onto its recent gains to retain the title of “Best of a Bad Bunch of the Week Award” thus far.

GBPUSD has held above 1.6100 but still can’t get above the key 1.6165-75 resistance level. If it was to do so many analysts are calling for a sustained move higher. I’m still not in that camp (shock!) but these tight ranges can’t/won’t persist for much longer and if something’s got to give then this pair could be wearing the Yellow Jersey.

EURGBP had a look at the strong 0.8140 level, trading as low as 0.8148 (GBPEUR up to 1.2273) on the back of the Dutch government folding but since then we’ve been in a tight 0.8152-72 range. GBPCHF is still managing to hold around 1.4700, GBPZAR remains above 12.50 and elsewhere the song remains the same.

The Aussie $ was the big mover overnight after CPI data ensured that the RBA will definitely cut rates by at least 25 basis points at its May meeting in 2 weeks time.

AUD/USD fell rapidly by 50 tics but now it has also become stuck again in a tight range.

GBPAUD has moved up through 1.5700 but fallen back a tad on early European trading.

I shall be writing one more update tomorrow then I’ll be away for a few days, so today will be your last chance to discuss strategy. For those of you needing to trade in my absence please contact your rate provider directly. Hopefully I shall be back at my desk on Monday to resume normal service.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

Good luck to Chelsea tonight as they bid to reach the Champions League Final at the expense of the mighty Barca. I fancy the Blues to go through but it will be no picnic.

And finally, I was delighted to hear from one of my most loyal readers who wrote “I expect a mention of Billericay Town in today’s MSP Update: promoted as champions from the Ryman Premier league after 30 years in that division!” Consider it done Daren! Glad to see your patience finally pay off, and as a fellow Essex boy supporting the Shrimpers all my life I share your pain, and now your joy!

Today’s Data:

09.30-UK- Public Sector Net Borrowing Requirement

10.00-EU- Eurozone Industrial New Orders

15.00-US- CB Consumer Confidence / New Home Sales

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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