Forex Investment and Currency Trading

EUR  - After plunging on Friday the clawback began in earnest that afternoon, grinding back above 1.58 just before we left. It’s been a relentless one way train. Eurgbp buying has been a key driver but the day traders are just playing for smalls right now with 50 ticks being a gift.  It continues to set higher lows (since the beginning of the year basically) and it is clear that despite all the noise and choppiness that the worlds reserve managers regard every dip as a buy so so should we.
 
 GBP  - The spot market wasn’t enamoured with the RBS rights issue and the long term effects of the SLS, and Eurgbp has reappeared above 80p. The BoE scheme was heavily anticipated last week and a degree of sell the fact crept in. Cable is off over 200 pts from the high, stopping around the 55d at 1.9820. The overall story is still very bearish but the key is to express the trade against the correct partner - Gbpjpy dropping 4 big figs last night as did Gbpchf, but cable seemingly the one to avoid.
 
 AUD  - Australian PPI much higher than expected and Audusd continues to set higher lows since the middle of March. Flow wise Aud has been quiet of late and should be a key beneficiary. Expect more focus as we edge towards the Feb highs at 95 for the drive to parity.  Audjpy touched the 200d last night at 97.95 and is worth keeping an eye on for a close above.
 
 JPY  - Frantic buying Friday was met with resting interest in the mid 104s, a slow drift down into the close followed and its been a slide since then. Some exporter activity combined with profit taking on longs has pushed us back to 103 with rumoured Asian CB involvement. Eurjpy has been largely unchanged with the corresponding move in Eurusd but hit good resistance on the dailies (Although you have to go back a bit to see it) at 165 off the July 07 high. Favour selling another look to 165 as with any rally to 105.