FX Markets today: 1.30 wall will not tumble for euro dollar rate, new assault by pound dollar rate unlikely

UK Money Transfer: Foreign exchange markets are looking to normalise after a huge profit-taking on Friday hit the USD vs. the other FX majors.

A light data calendar for today should keep trading choppy UniCredit tells UK Money Transfer. 

Looking at the euro we see that the EUR-USD pullback above 1.3144 suggests that the 1.30 wall will not easily tumble. However, EUR-USD needs to climb back above 1.3244-1.3325 to start rejecting the recent slide.

"Otherwise, selling-intorally strategies ahead of another assault on 1.30 remains recommended," say UniCredit.

Regarding the pound sterling, "We doubt that a new cable assault on 1.59-1.60 will easily occur, despite its pullback on Friday. We therefore still favour selling-into-rally strategies here too. In turn, EUR-GBP should remain unaffected by the EUR-USD and cable moves, remaining stuck above 0.83," says the Italian bank. 

Pacific Rim Currencies: The retreating USD offered both the Aussie and the Kiwi dollar some relief too. We still favor buying-on-dip strategies in both cases as early as at around 1.0550 and 0.8250, respectively. 

Nordics: "We consider the recent EUR-NOK spikes above 7.50 following the Norges Bank’s rate cut last week to be excessive. Thus, investors should consider buying a 9M put spread between 7.52 and 7.35," say UniCredit.

Banks vs Foreign Exchange Specialists

Should I go with my bank when it comes to transferring money in and out of the UK?

You could certainly go with your bank when it comes to transferring money in and out of the UK.

However, as the Money Transfer UK comparison tool shows, you are not likely to get the optimum exchange rate.

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