Mike Paterson’s daily Forex brief

As the Greek debt saga plays out to an ever increasing audience of disenchantment, we’ve seen the Euro fall in Asia and early European trading sessions as it appears less likely we will see any sort of mutually acceptable deal all the while the jumpers for goalposts remain just that.

The current Greek government says it has met, or will meet, all required conditions for surrender, eeeeek! I mean bailout. But Samaras seems to be making it clear that policy adjustments may/will be needed after the April elections. And now it’s a public mud-slinging contest with the Greeks admitting that there are many within the EU who wants them out. Why anyone is still remotely giving any credence to this ongoing farce shows just how delicate the repercussions are as we head ever closer to an inevitable default and uncharted territory.

EURUSD has been down to 1.2985 after finally falling back through 1.3050 and wiping its feet at the expected support line around 1.3025, while EURGBP has given up any chance of getting back above 0.8400 despite weak unemployment data and has fallen to 0.8288 (GBPEUR up to 1.2065) from a peak of 0.8391 (1.1918) seen around this time yesterday.

The next line of support for EURUSD is just below here at 1.2980 then more importantly at barrier option interest of 1.2950 while EURGBP will have buyers queuing up again around 0.8265 (1.2100).

Forex Update

Forex Update

Overall the US $ still continues to find favour and the Yen continues its weakening trend with plenty of Japanese importers as well as programme traders driving USDJPY up to a high of 78.82 thus far.

Little else to report really apart from telling you we have some US data and Fed Chairman Bernanke up later on to provide some alternative news to the Eurozone mess.

Oh and to cheer us up on these still dark and gloomy winter days England have discovered some form in the ODI’s v Pakistan winning both games so far and with Cook in glorious form with two tons. Well, he’s from Essex after all.

Have a good day out there.

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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