Mike Paterson’s Daily Forex Brief

We’ve seen a small reversal in prices since late NY as traders book a few profits on the back of renewed Greek uncertainties and the US budget talks making little headway.

EURUSD had hit the May highs of 1.3270, but found the barrier option I mentioned at 1.3300 one step too far and that was as good a signal as any to trim back recent purchases. We’ve since been back to 1.3189 but the buying interest returned and we’re at 1.3216 as I type.

EURJPY is also lower after the BOJ added the 10 trillion Yen as expected and traders took that as a cue to trim back on short Yen positions too. Sell rumour, buy fact. USDJPY is lower at 83.98 with EURJPY down to 111.04 after both pairs have found a couple of buyers in the dip.

EURGBP continues to wander around in its own range having been up to 0.8142 (GBPEUR down to 1.2280) and down to 0.8116 (GBPEUR 1.2321) and is currently at 0.8133 (1.2293).

GBPUSD found 1.6300 a step too far and has also fallen back but finding a few buyers above 1.6225 and is clinging to 1.6250 as I type.

MSPFX forex website

Plenty of data out today to keep traders fed (if they’re not out being watered at Christmas festivities) starting with UK Retail Sales at 09.30 GMT and then US GDP plus more from 13.30. It has the makings of being another lively day.

And there’s a certain sad irony to the announcement that London will host the 2017 Paralympic World Championships in the same 24 hours that we learnt of many cut backs in Paralympic funding. Legacy? What legacy?

I’m out all day today and tomorrow but will pick up texts and emails.

Stay dry out there.

Interbank Rates at 06:25 BST

Currency Pair


EURUSD 1.3216
GBPUSD 1.6250
EURGBP 0.8133
GBPEUR 1.2293
GBPCHF 1.4851
GBPAUD 1.5494
EURCHF 1.2080
GBPHKD 12.5986
EURHKD 10.2486
GBPZAR 13.8134
USDJPY 84.00
GBPCZK 30.9293

Today’s Data: BST

09.30-UK – Retail Sales

13.30-US – Weekly Jobless Claims / GDP

15.00-US – Existing Home Sales / Philadelphia Fed Manufacturing Index

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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