Mike Paterson’s daily Forex brief

More crazy stuff within recent ranges as rumour and counter- rumour hit the streets regarding this week-end’s EZ meeting and whether it would even take place while a certain despot was definitely having an early meeting with his maker which all added to the general confusion.

It would now appear that they will meet but will not be making any decisions (shock) regarding the EFSF amount and the Greek bailout in particular but will meet again on Wednesday evening according to Chancellor Merkel this morning. Whether we get anything from that remains to be seen. Getting 17 member states to agree is perhaps a justifiable excuse for delays but the way in which they are going about their business is, frankly, pitiful.

EURUSD once again tested the recent lows and strong support around 1.3660 but has since been back up above 1.3800 only to fall again to 1.3750 as I type with sell-orders reported around 1.3815-25, while EURCHF finally lost its appeal in the wake of any further SNB action and renewed Eurozone concerns. Yesterday’s slide has continued in Asia with another wave of selling down to 1.2206, 240 pips down from the recent high. Strong support now anticipated around 1.2160 and we still can’t rule out the SNB raising the peg but it would appear that the market for the moment has run out of patience. Perfect time perhaps for the SNB to jump back in.

Yesterday’s mayhem saw EURGBP back up at 0.8768 (GBPEUR down to 1.1405) before falling again below 0.8700 only to once again find support around the key 0.8685 (1.1514) area while GBPUSD was relatively sidelined.

Expect these fun and games to continue for a while yet, not least of which the usual frantic Friday trading, with the influential German IFO index and UK PSNBR both due in the next hour likely to have some impact without being the main influence on the day. That’ll be left once again to the EZ eejits.

On a brighter note let’s hope the mighty Shrimpers can secure all 3 points tomorrow, the Welsh stuff the Aussies in the match now, and the All Blacks thump the French on Sunday.

Have a great week-end all.

Today's Data:


Live Economic Calendar Powered by Forexpros – The Leading Financial Portal

Interbank Rates as of 07:45 BST

Current Price

Overnight

High

Low

EUR/USD

1.3759

1.3808

1.3754

GBP/USD

1.5783

1.5825

1.5773

EUR/GBP

0.8715

0.8734

0.8711

GBP/EUR

1.1466

1.1481

1.1448

GBP/CHF

1.4025

1.4133

1.3994

GBP/AUD

1.5435

1.5488

1.5399

EUR/CHF

1.2225

1.2335

1.2207

GBP/HKD

12.2366

12.2691

12.2288

GBP/ZAR

12.8978

13.0364

12.8055

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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