Mike Paterson’s daily Forex brief
Another topsy-turvy day but with little net effect as first rumours of a downgrade in French debt sent the Euro scuttling lower but after strong denials, and along with weaker US jobs, it was all-change and these losses were recovered.
EURUSD fell to 1.3070 and EURGBP had another look at 0.8160 (GBPEUR up to 1.2254) before recovering to 1.3164 and 0.8196 respectively.
GBPUSD wasn’t immune to the morning session wobbles and dipped below 1.6000 briefly before rallying strongly to 1.6054 then overnight to 1.6079 but still can’t get through 1.6100 on this latest recovery.
Overall the Pound has held its recent gains and we’ll see what impact the UK Retail Sales data has at 09.30 BST.
These markets are getting ever crazier to read and many traders are merely looking for definitive moves that simply aren’t happening, hence feeding off scraps continues to be the name of the game.
Plenty of rhetoric out there right now but little of substance. German IFO Business Climate Index just out at 109.9 was better than expected and we’ve seen a rally to 1.3180 and 0.8201 on EURUSD and EURGBP respectively, but both being capped again as I type.
Little else to report but it’s Friday, blah blah, so we know that we should expect a bit of volatility at some point. Where from/to remains a coin-flip. As indeed does the Shrimper chances of automatic promotion so 3 points tonight against struggling Barnet is an absolute must. Problem being that our boys don’t do absolute musts!
Good luck to all your teams this week-end as promotion and relegation battles come to a crucial stage. And let’s hope the Bahrain GP goes off safely whether you agree it should be there or not (that’s a blog in its own right!). Have a great week-end wherever it takes you.
09.00-EU- German IFO Business Climate Index 09.30 / UK- Retail Sales
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