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.
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………..
09.00- EU- Eurozone Manufacturing PMI
09.30-UK- Construction PMI / Mortgage Approvals/Lending / M4 Money Supply
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