Mike Paterson’s daily Forex brief
Currency markets have quietened down again in what seems to be a regular pattern of stability interspersed with occasional chaos and mayhem.
In the absence of any major impetus the Euro has steadied a little with EURUSD heading back above 1.2300 after dipping again yesterday. EURGBP has failed again at the 0.7910-20 support area but isn’t heading back up too rapidly as GBPUSD picks up a few buyers again and is holding above 1.5500.
UK data just out shows a better than expected trade balance and that too has a put a little spring in the Pound’s step having lost a little ground overnight, but it’s really quiet out there at the moment.
Chinese trade balance data out overnight confirms a slowdown in both imports and exports as one might expect but the trend is not encouraging and gives further cause to believe their landing may well be a hard one.
Gold and stocks are holding steady with the FTSE back above the pivotal 5650 level and Gold finding buyers around $1580.
Following on from yesterday’s British sports round up, we now have Bradley Wiggins leading the Tour de France after a thrilling Stage 9 time trial yesterday, strengthening his hold on the yellow jersey. Oh and England have another ODI v the Aussies today for a 4-0 lead. Happy days…….
Interbank Rates 08:43 BST
Today’s Data: BST
09.30-UK – Industrial Production / Manufacturing Production / Trade Balance
15.00-UK – NIESR GDP Estimate
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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 firstname.lastname@example.org
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.