Mike Paterson’s Daily Forex Brief
Yesterday’s widely anticipated UK Q3 GDP may have been provisional and may yet prove to be a one-off but traders have been happy to gorge at the table and gain a few Pounds as their appetite for Euros wanes yet again.
GBPUSD may not have been able to hold its gains above 1.6150 following the data release but it’s holding up well enough given a general risk-off sentiment that’s prevailed over the past 24 hours. We’re back to 1.6110 having dipped to 1.6097 earlier this morning but overall we’ve seen some decent gains for the Pound.
EURGBP is down to 0.8025 (GBPEUR up to 1.2460) with traders reporting good concerted interest to sell which in turn has forced EURUSD lower again to test recent lows around 1.2920 after its rally to 1.3023 yesterday.Â As month-end approaches we shouldn’t forget the natural Bundesbank buying that always ensues to cover the UK’s EU payment and there’s technical support at current levels with bigger levels at 0.7990 (1.2515).
GBPCHF has risen to 1.5088, GBPAUD to 1.5637 with the Aussie $ running out of steam again and GBPZAR is once again above 14.00.
The Euro though looks soggy again (my word of the week eh?!) and my sources report decent size stop-loss selling to be triggered below 1.2915 on EURUSD if the current support levels give way.. We can expect decent acceleration lower on a fickle Friday if so, but we know we’ve been going nowhere fast of late.
This afternoon sees the US Q3 GDP provisional release which may have impact but there’s not much else on the horizon to shake things up in what’s been a less than inspiring week.
And if any inspiration is indeed forthcoming let’s hope some it finds its way into the enchanting (Er, pardon? Ed.) coastal resort of Southend tomorrow after the Shrimpers’ less than mighty results recently.
Have a great week-end all!
Interbank Rates at 08:42 BST
Today’s Data: BST
13.30-US – Q3 GDP (Prov)
14.55-US – Michigan Consumer Sentiment (Prov)
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 firstname.lastname@example.org
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.