Mike Paterson’s daily Forex brief
We’ve seen further pressure on the Euro as hopes fade of anything than the usual can-kicking to emerge from this week’s EU summit despite various chunks of hot air over banking and fiscal union.
EURUSD has fallen below the key 1.2500-1.2520 area and so far this morning has dipped further on stop-loss selling to 1.2487. Usual suspects buying a few down here but plenty of sellers again initially around what now becomes the 1.2520 pivot area and more above 1.2560.
EURJPY is lower on a Catch-22 basis as EURUSD drives the pair lower and vice-versa. EURGBP is also lower again sitting on the recent base around 0.8025 (GBPEUR resistance 1.2460) after a rally back up to 0.8071 (GBPEUR dip to 1.2391).
GBPUSD has fallen to support lines around 1.5550 as the risk-off sentiment prevails exacerbated by further talk on the streets that the Peoples Bank of China are preparing to cut interest rates again thus admitting they have concerns over its faltering economy.
Generally the Pound is little changed with plenty of two-way business at these levels.
Little in the way of data today but with the EU summit and month-end flows dominating this week’s events we should expect some decent volatility, so get your orders in.
And the flags can be put away again as England once more fall in a penalty shoot-out, and once more fail to progress past the quarter-final stages. Time to take out the old guard Uncle Roy and rebuild. And do us all a favour, don’t even think about letting Ashley Young near an England shirt again, even if the blame for a dismal team performance last night can be equally shared.
But hey, our England rugby union boys finished with a well-deserved draw versus SA and today sees the start of Wimbledon, and it’s sunny. What’s not to like?!!
Have a great week out there.
Interbank Rates 08:38 BST
Today’s Data: BST
15.00-US – New Home Sales
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