Mike Paterson’s daily Forex brief
What doesn’t go down in theory normally goes back up and so it’s proved with the Euro as traders pause for breath after the recent fun and games.
EURUSD has climbed back towards the top of recent ranges but is running into sellers again around 1.2450 while EURGBP has also had a strong rally as the Pounds gets another reality check. So far we’ve stalled ahead of the big 0.8000 level (1.2500) but there seems to be decent bids above 0.7925. Famous last words!
GBPUSD has come off its highs but there appears to be good two-way business but elsewhere we’ve seen concerted selling against the Swiss Franc and rampant Aussie $, the latter falling to 1.4706 thus far.
Markets are thin and traders seem unwilling to get too involved but we have Fed Chairman Bernanke up to the podium tonight so we’ll take nothing for granted. Data just out shows UK Industrial and Manufacturing Production in weaker mode but not quite as bad as forecast. Pound little changed as I type.
England’s cricketers secured a draw versus South Africa but remain 1-0 down with one to play. And our Olympic medal haul grows each day after a slow start. Summer time and the living is not so bad at all thank-you.
Interbank Rates 08:54 BST
Today’s Data: BST
09.30-UK – Manufacturing Production / Industrial Production
11.00-EU – German Factory Orders
15.00-UK – NIESR GDP Estimate
19.30-US – Fed Chairman Bernanke speaks
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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.