Mike Paterson’s Daily Forex Brief
Friday saw the release of the key Non-Farm Payrolls data and the figure of +146,000 was far better than expected giving the US Dollar some additional support in volatile trading.
In thin end-of-week markets, and coming on the back of Thursday’s revelations from the ECB press conference, EURUSD fell to 1.2876 and GBPUSD to 1.6002 as traders were forced out of short-USD positions.
But with concerns remaining over the US budget talks the jury’s still out as to where we go from here. We saw a small bounce back in late NY trading and despite another dip in Asia we’ve had some good two-way business in early European trading.
EURUSD has been back up to 1.2928 and GBPUSD to 1.6044 before sellers re-appeared but still on a path of its own is the Aussie $ which has maintained recent gains above 1.0450 although still finding 1.0500 a step too far at present. GBPAUD has been down to 1.5272 but currently clinging to 1.5300.
EURGBP fell on the back of the US jobs news as EURUSD outstripped GBPUSD and we’ve dipped further in Asia to 0.8035 (GBPEUR up to 1.2445) before finding a few Euro buyers as elsewhere.
Little to get excited about today in the way of data but BOE Governor King is speaking at 17.15 GMT and there’s plenty of global data coming out this week to keep traders on their toes.
Expect them to be jumping around even more though as markets become thinner and year-end flows start to kick in.
No such nerves in the England cricket team though, despite a little wobble, before securing a 3rd Test victory in four days to take a 2-1 series lead. The boys have produced some brilliant cricket in coming back from the 1st Test defeat and now stand poised to secure a famous series victory.
The mighty Shrimpers secured a valuable away point and yesterday’s Manchester derby produced a real feast but marred by coin-throwing incidents. Mind you, down in League 2 we’d be gratefully collecting them in a bucket to shore up the club’s finances!
Have a good week out there.
Interbank Rates at 08:44 BST
Today’s Data: BST
17.15-UK – BOE Governor King speaks
00.01-UK – RICS House Price 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.