Mike Paterson’s daily Forex brief

Well, we’ve seen the two-way business that I anticipated yesterday prompted by rumours yesterday morning that the Bundesbank would not be accepting certain sovereign debt from some of its EX partners such as Portugal.

This was later denied but not before EURUSD had a reversal from previous gains and got sold off below 1.3300 and almost testing key support at 1.3250. GBPUSD joined in on this risk-off sentiment and dipped to support at 1.5980 before both recovered and now sit where we came in yesterday with the USD taking most of the brunt.

USDJPY has fallen sharply again to 81.54 but found fresh buyers and has rallied above 82.00 but it seems a fragile recovery at present.

EURGBP fell on the Euro shakeout and had a brief look below 0.8300 (GBPEUR up through 1.2050) but has since found some buyers in lacklustre trading.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

Last night the RBA left Aussie interest rates on hold but hinted that they might cut next time and the Aussie $ got a little slap but has since steadied.

Key event today will be the release tonight of the Fed’s FOMC Minutes which may spring a surprise or two.

All in all though expect more of the same scrappy stuff ‘til then.

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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