Mike Paterson’s daily Forex brief

It’s getting a bit predictable and boring, this up ‘n down in a tight range and no follow-through, but that’s what we’ve got for a while yet in the absence of any earth shattering news.

After the Pound’s understandable mini-correction we’ve seen a few buyers emerge again and GBPUSD has rallied back above 1.6200 only to run into sellers ahead of 1.6250.

EURGBP failed to break above 0.8200 and has since been back to 0.8141 (GBPEUR up to 1.2285) as EURUSD ran out of steam above 1.3280.

Talk is that the SNB could still be unloading EURUSD in the rallies to diversify its intervention, and along with stronger than expected US manufacturing data yesterday was enough to send the pair briefly back below 1.3200. I also hear that the SNB have been strong buyers of UK bonds, giving the Pound some further support of late.

The Aussie dollar found a few buyers after the fall-out and with better than forecast Chinese manufacturing PMI overnight we saw AUDJPY the prime mover overnight causing USDJPY to hold its gains back above 80.00.

GBPAUD stuck its head back above 1.5700 but has fallen back a tad since.

This morning brings us some key data from the UK and Eurozone and we can only hope this livens things up a bit, but I’m sure many of you will settle for this naturally controlled risk management.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

So Mr Hodgson gets the official nod for the England job and the FA suits get their easy ride and the cheap option regardless of their protestations to the contrary. But a four year contract? Ouch again….. Are we to assume that Harry has a few skeletons yet to be revealed….?

And farewell Stephen Hendry, 7 times World Snooker Champion, who announced his retirement yesterday after crashing out in the quarter-finals. Not exactly Mr Charisma over the years but one of the greatest players to grace the game. Off to take the Chinese payday now and who can blame him. He’s not exactly alone on that one………..

Today’s Data:

09.00- EU- Eurozone Manufacturing PMI

09.30-UK- Construction PMI / Mortgage Approvals/Lending / M4 Money Supply

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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