Mike Paterson’s daily Forex brief
The Euro has come under pressure again after ex Greek PM Papademos said that preparations are being made for a Greek exit from the Eurozone and the risk is real, while Merkel seemingly refuses to concede ground on growth/Eurobond/money printing ahead of today’s EU summit.
EURUSD fell in a rush and has been down to 1.2645, taking with it EURGBP which has been back down to 0.8031 (GBPEUR up to 1.2453), and EURJPY has fallen to 100.22 from 101.49.
The US Dollar continues to remain supreme with GBPUSD falling to 1.5732 having failed to break up through the 1.5850 level I‘ve been mentioning, while AUDUSD has been down to 2012 lows of 0.9729, forcing GBPAUD back up through 1.6100.
Dollar aside the Pound has enjoyed some decent gains overall ahead of the BOE’s MPC Minutes and Retail Sales this morning which may well have negative impact though upon release.
More data out from the Eurozone and then the US to keep things ticking over while the EU leaders decide what they can/cannot, might/might not do.
The return to risk-off sentiment (were we ever really risk-on?) has seen stock markets slide again after a brief rally and the USD strength has also kicked back into the Gold price which has fallen back to support lines around $1550 after failing to break up through strong resistance around $1595 that I mentioned.
So Stamford Bridge and Didier Drogba finally say their good-byes after 8 incident packed years and Uncle Roy has his first England get- together today ahead of Euro 2012 Â (don’t forget to keep checking http://englandtilidie.wordpress.com/ as the build up continues).
And a loyal reader from Bedfordshire has picked me up on my factual inaccuracies in claiming Alastair Cook as one of my own as an Essex boy when he simply plays for the county. I am happy to declare of course that he does in fact hail from the aforementioned minor county but of course had to seek his fame and fortune by plying his trade for a proper side!
Stop Press: MPC votes 9-0 to keep interest rates on hold and 8-1 to maintain QE at Â£325 billion but Retail Sales have come in weaker than expected at -2.3% m-o-m and –1.1% y-o-y. The Pound has come in for a little bit of a sell as I sign–off.
Interbank Rates 08:47 BST
Today’s Data: BST
09.30-UK- BOE’s MPC Minutes / Retail Sales
10.00-EU- Eurozone Industrial New Orders
11.00-UK- CB Industrial Trends Orders
15.00-US- New Home Sales / House Price Index
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