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.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

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

Currency Pair

Current

Overnight

High Low
EUR/USD 1.2491 1.2572 1.2487
GBP/USD 1.5554 1.5596 1.5552
EUR/GBP 0.8033 0.8071 0.8026
GBP/EUR 1.2447 1.2462 1.2391
GBP/CHF 1.4950 1.4967 1.4873
GBP/AUD 1.5533 1.5561 1.5468
EUR/CHF 1.2009 1.2013 1.2005
GBP/HKD 12.0590 12.0915 12.0574
EUR/HKD 9.6883 9.7583 9.6753
GBP/ZAR 13.1373 13.1674 13.0359
USD/JPY 80.07 80.63 80.02
GBP/CZK 32.0426 32.1473 31.8190

Today’s Data: BST

15.00-US – New Home Sales

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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