Good
Morning,
A quiet-ish 24 hours in the absence of new data and with a Japanese holiday
overnight.
The Dollar has been sold a little as concerns remain for the fragility of the
US financial sector and traders have been looking at cross-currency yield plays
with EUR/JPY hitting records highs yesterday of 169.91.
EUR/GBP came back to 0.7940 from the resistance levels I mentioned around
0.7970 but has found good support there as EUR finds favour across the board.We
still have key resistance at 0.7980 before stronger lines come in at 0.8010.
EUR/USD is back above 1.5925 and GBP/USD has inched back above 2.00 ahead
of speeches later from BOE Governor King and US Treasury Sec Paulson.
Figures released just now show the Swiss trade surplus with the rest of the
world at a record high in June of CHF 2.41 bio and, yes, someone is buying a
lot of watches...exports of these rising 13.4 % !
Only key data today is the US Housing Price Index but this could well trigger
some volatility . More data of note follows tomorrow and through the rest of
the week and traders will be knee-jerking ahead of any clear trend.
Regards
Mike
Mike Paterson is a former senior inter-bank trader with UBS
and Credit Suisse and has been involved in the FX market for over 28 years. He
now runs his own consultancy advising private and corporate clients on best
execution of currency requirements trading them through a small number of
preferred rate providers. For further information please contact him at
:
MSP
Foreign Exchange Services
Office:
+ 44 ( 0 ) 1732 700383
Mob:
+ 44 ( 0 ) 7887
581696
Email:
