Mike Paterson’s Daily Forex Brief

We’ve seen another day of consolidation as traders reflect on the possible outcomes of tomorrow’s interest rate and QE decisions from the BOE and ECB plus factoring in talk of a further French debt downgrade.

EURUSD has failed to make any further ground and has fallen back to 1.3066 before finding a few buyers on technical support while GBPUSD has also dipped to 1.6036 where similarly it’s picked up a few bids.

EURGBP looks perky above 0.8125 still but is heading nowhere fast and the Pound continues to trade in a tight range.

This morning brings us the latest UK Trade Balance data at 09.30 GMT followed by German Industrial Production at 11.00 GMT.

USDJPY has picked up a few buyers in the dip which is having an impact on the other currencies too but not too much to shake a stick at currently either.

Difficult to tell where the next decent move is coming in any of it, which explains why we’re in consolidation mode.

And Frank Lampard could be on his way to Old Trafford in the summer if latest reports are to believed, while in the world of cycling Lance Armstrong has agreed to go on the Oprah show where he is expected to confess to his multiple doping sins and no doubt shed a tear and plead forgiveness. Getting none from me, that’s for sure.

MSPFX forex website

Interbank Rates at 08:38 BST

Currency Pair

Rates

EURUSD 1.3091
GBPUSD 1.6068
EURGBP 0.8147
GBPEUR 1.2271
GBPCHF 1.4836
GBPAUD 1.5279
EURCHF 1.2089
GBPHKD 12.4575
EURHKD 10.1520
GBPZAR 13.7523
USDJPY 87.62
GBPCZK 31.3354

Today’s Data: BST

09.30-UK – Trade Balance

10.00-EU – Eurozone GDP

11.00-EU – German Industrial Production

18.00-US – Ten Year Note Auction

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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