Mike Paterson’s daily Forex brief
We’ve seen some selling of GBPUSD so far this morning ahead of the latest Quarterly Inflation Report from the Old Lady at 10.30 BST. Talks is that growth forecasts will cut again dramatically to near zero from the 0.8 % hoped for in May.
GBPUSD has fallen to 1.5572 from 1.5625 thus far in early European trading on the belief that the lower growth must lead to additional QE sooner rather than later. Overall the Pound has had a shaky start to the day but is finding a few buyers on the dips for the moment at least.
EURUSD did indeed find a cap at 1.2450 that I mentioned yesterday and it too has fallen in lacklustre trading driven by decent selling in EURJPY. Expect stop-loss selling on the former if we go through 1.2350 as traders give up on long-positions once again.
The Aussie $ continues to be favoured with AUDUSD on overnight highs around 1.0560 dragging GBPAUD down almost 100 tics exacerbated but the GBPUSD selling. Tonight sees Aussie Unemployment and Chinese CPI data which should have impact.
Meanwhile at London 2012 the GB medals hauls continues unabated with, amongst other notable performances, Sir Chris Hoy showing why he’s the greatest GB Olympian of all time with 6 gold medals to his name. The GB total of gold medals now stands at 22, surpassing the 19 in Beijing and the highest total since another London Olympics in 1908. With 5 more days to come it really could better all expectations after an undoubtedly shaky start, and provide the “legacy” much craved by the organizers.
Interbank Rates 08:54 BST
Today’s Data: BST
10.30-UK – BOE Inflation Report
11.00-EU – German Industrial Production
13.30-US – Non Farm Productivity / Unit Labour Costs
02.30-AU – Aussie Unemployment Rate / CH- Chinese CPI
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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.