Mike Paterson’s Daily Forex Brief

We’ve seen the US Dollar come under fire a little more in the past 24 hours in the wake of weaker than expected ISM Manufacturing data and the on-going fight between Democrats and Republicans on the budget plan due to come into effect on Jan 1st.

EURUSD rose through key resistance around 1.3030 and touched 1.3080 before falling back to 1.3045 overnight, but this morning we’ve looked at the topside again where the sellers have so far prevailed.

GBPUSD has finally found some legs in this move and we’ve now breached 1.6100 for the first time in a while which has in turn forced EURGBP down to 0.8106 (GBPEUR up to 1.2338). Expect decent support down here above 0.8100 with sellers coming back in around 0.8125-30.

The Euro is also enjoying decent buying interest as EURCHF makes one of its moves back through 1.2100 on talk that a major Swiss bank will impose a 1% charge on balances over CHF 100 Million. GBPCHF is also higher on the news to 1.4947.

Last night the RBA cut Aussie interest rates by 0.25% to 3% but we’ve seen a rally after the initial dip as the market seems to have priced it in and all been the same way round (short Aussie $). AUDUSD is higher at 1.0471 and GBPAUD lower at 1.5395 from highs of 1.5465. Looks like the RBA will have to a bit more to drive the Aussie $ lower.

Expect another scrappy day today with little data to feed off.

England get Australia and Wales in their 2015 Rugby World group while Ireland have France and Italy, with Scotland coming up against SA and Samoa. With all the seedings understandably based on current world rankings it does beg the question why the draw needs to be made so early.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

Interbank Rates at 08:47 BST

Currency Pair


EURUSD 1.3078
GBPUSD 1.6120
EURGBP 0.8110
GBPEUR 1.2329
GBPCHF 1.4947
GBPAUD 1.5397
EURCHF 1.2121
GBPHKD 12.4978
EURHKD 10.1369
GBPZAR 14.2467
USDJPY 82.01
GBPCZK 31.1346

Today’s Data: BST

09.30-UK- Construction PMI

00.30-AU- GDP

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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