The Rugby World Cup has drawn to a close with a thoroughly deserved triumph for the All Blacks. With the sport over we can now look forward to Christmas jingles and annoying adverts on TV as let’s face it, the marketing supremo’s have decided the first week in November is almost too late to start thinking about Christmas. Ho ho ho
GBP/EUR is now at a key level. It is encountering resistance at 1.40 the figure although after Markit Manufacturing PMI (Oct) out of the UK this morning it rocketed up over 50 pips. If you have a requirement to purchase Euro’s I would suggest it may be appropriate to consider either covering off a portion of your exposure on SPOT or placing a market order to the upside to take advantage of further gains. Please contact me or one of the trading team today to discuss your requirements. In the UK this week the main event is ‘Super Thursday’ (Hopefully everyone will stop referring to these days as ‘super’). This encompasses BoE Policy meeting, minutes, Inflation report (QIR) and the press conference. With inflationary pressures in the UK I would suggest Sterling may struggle later this week. We have Mario Draghi speaking tomorrow evening and this will move the single currency so we may see a combination contributing to GBP/EUR coming off. QE will be discussed and also the Greek banking situation. If you can achieve anything from 1.39-1.40 I would look to execute at these levels.
Will we see a sustained break above 1.55? Nope. I’d suggest we’ll have better than expected NFP (Non-Farm payroll) figures released on Friday from the US and we’ll see Cable drift lower again. We’ll see a stronger US Dollar over the next month so I would look to take advantage at current levels if you’re a US Dollar buyer. Please contact myself or one of the trading team to discuss your requirements. We have ISM manufacturing PMI (Oct) out of the US this afternoon. Please do consider your exposure on Cable this week as data is primarily focused on Sterling.
If you have any questions please do let me know.
Have a great week.
Written by Liam Alexander