Mike Paterson’s Daily Forex Brief

A combination of a cease-fire in the Israeli-Palestinian conflict, better than expected Chinese data, and traders closing out short-Euro positions ahead of today’s US Thanksgiving holiday have all helped to put some life back into the Euro and risk-trades in general.

Throw the weakening Yen into the mix and we’ve seen EURUSD climb back up to 1.2868, EURJPY to 106.59, which has put another base underneath EURGBP which continues to trade in recent ranges.

Following Tuesday night’s dip to 0.8006 (GBPEUR up to 1.2493) we’ve seen a move back up to 0.8059 (1.2406) overnight but the sellers have re-appeared in line with decent recent resistance in the other Euro pairs.

GBPUSD has lagged behind the EURUSD move but still made decent gains to 1.5979. Obvious target now is 1.6000 but it won’t be an easy one to breach.

USDJPY continues its march higher and has now reached 82.85, Gold remains well supported but going nowhere fast and equity markets are a tad better supported this morning.

It’s going to be a long day ahead but in thin markets we know anything can happen. Keep those orders in the market, however wish-list. There’ll be a few eyes and ears cast towards Brussels as EU leaders meet for a special budget summit. UK PM Cameron has a job on his hands to persuade many to vote for a freeze but he does have a few decent allies, Germany included, on his side.

Rafa Benitez has been duly appointed interim manager at Chelsea which has been less than warmly received by the Stamford Bridge faithful, while Mancini says he has no fears for his own job despite being knocked out of the Champions League again.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

And in the world of cricket Aussie Michael Clarke became the first player to hit Test match double-hundreds in a calendar year after scoring a sublime unbeaten 224 from 243 balls in the Second Test versus South Africa.

And finally, a quick pause for thought. Yesterday we said a final farewell to our dear friend from the markets Fred Ridgeway, who as I reported last Friday sadly passed away having battled against Motor Neurone Disease. His success as both broker and actor is a remarkable story and a lesson in to us all. Check out The Guardian and be inspired. I shall be writing my own tribute for these pages over the next few days.

Interbank Rates at 08:37 BST

Currency Pair


EURUSD 1.2862
GBPUSD 1.5970
EURGBP 0.8048
GBPEUR 1.2415
GBPCHF 1.4955
GBPAUD 1.5388
EURCHF 1.2046
GBPHKD 12.3825
EURHKD 9.9738
GBPZAR 14.2643
USDJPY 82.77
GBPCZK 31.5717

Today’s Data: BST

11.00-UK – CBI Industrial Trends Survey / US Thanksgiving Holiday

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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