Mike Paterson’s daily Forex brief

In essence nothing much has changed from where we were this time on Friday, apart from seeing a further weakening of the Swiss Franc with USDCHF, GBPCHF and EURCHF much higher than where we left them before the weekend. Seems like the SNB are certainly having their way right now.

Gold is higher again, currently at $1831, while stocks are also back near the top of recent ranges.

The USD has seen some further weakness as minutes released yesterday from the last FOMC meeting show that further easing in monetary policy, QE3, is becoming more likely, but the Pound continues to have little appeal either.

EURUSD is still capped by 1.4500 but little momentum to take it on again of late. EURGBP has seen the month-end buying I've talked about previously and currently at 0.8858 (GBPEUR down to 1.1286). GBPUSD is still in tight ranges around 1.6300 and across the board, apart from the engineered CHF, we've seen the Pound lose ground again (see rate table below).

This morning sees Eurozone Unemployment data while this afternoon sees the ADP Non-Farm Employment change from the US, neither of which should set too much alight as traders start to drift back to their desks but lacking any real appetite or direction right now.

Won't stay that way for long though ……….. .

Today's Data:

Weekly Economic Calendar-HERE

Interbank Rates as of 08.33 BST

Current Price

Overnight

High

Low

EUR/USD

1.4442

1.4455

1.4416

GBP/USD

1.6303

1.6331

1.6290

EUR/GBP

0.8857

0.8863

0.8840

GBP/EUR

1.1286

1.1313

1.1281

GBP/CHF

1.3238

1.3392

1.3216

GBP/AUD

1.5277

1.5317

1.5238

EUR/CHF

1.1727

1.1854

1.1705

GBP/HKD

12.6400

12.6620

12.6300

GBP/ZAR

11.4662

11.5750

11.4578

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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