Mike Paterson’s daily Forex brief

On the road this morning so apologies for late delivery and reduced update but hey, I know you lovely and loyal readers will understand!

So what's been going on? Well, it's still risk-off sentiment out there and we've seen EURUSD and GBPUSD fall to 1.3428 and 1.5754 respectively but since recovering to 1.3551 and 1.5775 meaning that the Pound is lagging behind due to some good-name buying of EURGBP.

The pair has just touched 0.8585 (1.1648) after yesterday falling to 0.8518 (GBPEUR up to 1.1740) on better than expected inflation data and weaker Euro, but the expected reality check kicked in as I suggested and even though UK inflation may be lower this time next year the damage will have been done. Resistance at 0.8600 remains the next hurdle again but expect acceleration should this break. Support now at 0.8550 and 0.8515.

Euro strength seen this morning generally on improvement in Italian bond spreads and EU Commission Head Juncker saying that they will aim to have the technical terms of leveraging the EFSF announced by the end of November. Plenty of sellers though above 1.3550 and a good battle going on so far this morning.

Daily Forex Brief2

Daily Fx Brief

UK jobless released just now was slightly better than expected at 5k rather than 20k and unemployment rate came in at 5% against forecasts of 5.1%but the number of young people out of work rose to 1.016 million, above the 1 million mark for the first time since comparable records began in 1992. Unemployment rate among eligible 16-24 year olds is now up to 21.9% which makes for horrible reading and makes a mockery of the government’s claims that the private sector will fill public sector losses. I was cynical over these claims when originally stated and I have absolutely no reason to change my stance.

Plenty more data out today (see table below) and we're in for another messy day for sure.

Ok, coffee break over. Time to hit the road again. Normal service resumed tomorrow!

Today's Data:

Live Economic Calendar Powered by Forexpros – The Leading Financial Portal

Weekly Economic CalendarHERE

Interbank Rates as of 09:18 BST

Current Price

Overnight

High

Low

EUR/USD

1.3551

1.3546

1.3428

GBP/USD

1.5775

1.5831

1.5754

EUR/GBP

0.8576

0.8584

0.8519

GBP/EUR

1.1650

1.1740

1.1648

GBP/CHF

1.4442

1.4538

1.4421

GBP/AUD

1.5515

1.5675

1.5510

EUR/CHF

1.2387

1.2415

1.2368

GBP/HKD

12.2420

12.2737

12.2133

EUR/HKD

10.5081

10.5317

10.4853

GBP/ZAR

12.8705

13.0170

12.8373

USD/JPY

x.xxx

x.xxx

x.xxx

GBP/CZK

2.9725

3.0309

2.9702

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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