Mike Paterson’s Daily Forex Brief
It’s been a quiet start to the month, with the US on holiday yesterday and traders looking to keep their powder dry ahead of Thursday’s interest rate /QE decisions from the BOE and ECB.
That’s not to say of course that it couldn’t kick off at any stage but with these meetings and then next week’s decision from the Fed plus the German constitutional ruling on ESM no-one’s going to get too extended at this point.
EURUSD has cleared out the offers 1.2600 but hardly gone racing, capping at 1.2628 thus far having forced a few Euro shorts to be squeezed out. Back to 1.2603 as I type. GBPUSD similarly took out offers at 1.5900 but capped at 1.5910 and is now back at 1.5891, while EURGBP continues to sleep-walk in its tight range.
Overnight the RBA left Aussie interest rates on hold at 3.5% and the statement disappointed the doves forcing a small rally in the Aussie $ but fears remain that the Chinese hard landing, already causing major impact in the whole region, will force a re-assessment of related currency values.
UK Construction PMI just out shows the largest drop in new orders since April 2009 while this afternoon brings us more PMI data from the States.
Meanwhile in the world of sport, Andy Murray impressively qualifies for the US Open quarter-finals and Kiwi Warren Gaitland will today be officially confirmed as the British Lions Head Coach for next tour to Australia. And of course we’ll all be cheering on the Shrimpers in their League Cup match tonight won’t we. Of course you will!
Interbank Rates at 08:26 BST
Today’s Data: BST
09.30-UK – Construction PMI
10.00-EU – Eurozone PPI 14.00-US- Manufacturing PMI
15.00-US – Construction Spending / ISM Manufacturing Index
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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.