Mike Paterson’s daily Forex brief

In the busiest 24 hours we’ve seen in a while the US Dollar has made extensive gains after the Fed’s FOMC Minutes were released and made no mention of further monetary easing or “QE3”.

This should have come as no great surprise given the hawkish/bullish statement at the time but hey, these are nervous markets and traders act with little rationale. It’s more a herding, or should that be lemming, instinct.

Either way we’ve seen EURUSD slice through the key 1.3250 support and then the 1.3187 technical base to lows of 1.3175 while GBPUSD has dropped to lows thus far of 1.5868 but finding a few buyers around there on technical/chart support lines.

EURGBP has had another look below 0.8300 (GBPEUR up through 1.2048) but so far is holding around support lines of 0.8290 (1.2062 resistance). Elsewhere the Pound is also improving as other currencies get a bigger slap at the moment, notable the Aussie $ which fell through huge support at 1.0300 versus the USD and GBPAUD has moved back up to 1.5470.

USDJPY has had traders scurrying for cover too and is back up to 82.70 from lows of 81.54 yesterday.

EURCHF has eased off a little given the Euro falls but there is talk that the SNB are firmly on the bid at 1.2020 to protect the 1.2000 cap for the France.Should 1.2000-20 break there is every chance traders will bail-out and some.

If it’s been a lively 24 hours it’s likely to get even busier today as traders try to pick a bargain and with a raft of data as well as the ECB interest rate decision and press conference. We expect them to leave rates unchanged but we know the press conference always throws up a few curve balls.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

England’s batsmen are going along ok at 68-0 having bowled out Sri Lanka for 275 and we’ll see whether they will do what is now customary for our national sportsman and that’s perform far better when the chips are down. The ol’ bulldog spirit huh?

And good luck to all you Chelsea fans out there as tonight they bid to make it to the Champions League final. What price on Di Matteo staying should that happen?

Busy day ahead folks. Good luck out there.

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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