Mike Paterson’s Daily Forex Brief

The so called “Plan B” from US House Speaker, John Boehner, has been rejected with an intended vote last night being cancelled through lack of support.

There is an increasing likelihood that there will be a failure to agree and the “fiscal cliff” will loom large come the New Year, but can they really afford to be that stupid ? Well, it’s not without precedent. Talks are due to resume on December 27th.

Traders have run scared in thin markets and EURUSD has retreated from another attack on 1.3300 yesterday to once again testing strong support around 1.3180. Deja vu or what…….

EURGBP has stayed in its own recent range with sellers at 0.8150 and buyers around at 0.8110

GBPUSD again failed to break through 1.6300 and dropped back to support lines at 1.6240 which we’re still clinging too as I type. Overall the Pound is little changed but has made gains against the weakening Aussie which always gets a slap in risk-off scenarios. AUDUSD is back down at 1.0450 forcing GBPAUD up to 1.5570.

Big data time for the UK this morning with Current Account and GDP data out at 09.30 so we’ll see some action then, and all in all we can expect another lively day in thin markets as many traders close shop for Xmas.

MSPFX forex website

Man United get Real Madrid in the Champions League last 16, a match which is being dubbed as Jose’s audition for the Old Trafford job while down on the Essex coast tomorrow the mighty Shrimpers look to extend their unbeaten run to 13 games.

For those of you finishing for Xmas today I wish you a terrific festive season and thanks for your company this year, but I’ll be back with an update on Monday for all of us still working.

Have a great week-end and good luck with the last minute shopping!

Interbank Rates at 06:45 BST

Currency Pair

Rates

EURUSD 1.3205
GBPUSD 1.6248
EURGBP 0.8126
GBPEUR 1.2303
GBPCHF 1.4854
GBPAUD 1.5542
EURCHF 1.2080
GBPHKD 12.5970
EURHKD 10.2390
GBPZAR 13.8634
USDJPY 84.05
GBPCZK 30.9921

Today’s Data: BST

09.30-UK – Current Account / GDP / Business Investment / Public Sector Net Borrowing Requirement

13.30-US – Durable Goods

14.55-US – Michigan Consumer Sentiment

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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