Mike Paterson’s daily Forex brief

Not a whole bunch of news to report really, just more of the same. EU leaders continue to try and get a deal sorted on Greek debt with various statements, some conflicting, but nothing finalized as yet.

Either way it seems like the Euro has a few buyers in the dips again and the key support area of 1.3060-80 that I mentioned last week has been tested again and held with lows seen yesterday of 1.3077.There’s talk of fund managers having to sell some USD for month-end book balancing and overnight we’ve seen EURUSD edge higher and again this morning to 1.3214 on the back of better than expected German jobs data before capping again.

EURGBP is attracting the usual month-end buying interest too but has so far failed to break back up over 0.8400 even on this latest EURUSD rally.

EURJPY found some buyers off the lows both on the better Euro sentiment and talk that the BOJ had asked traders in Japan to remain late at their desk, prompting the conclusion that they might be getting ready to intervene. Nothing doing so far and USDJPY has fallen back a little but still attracting bids around 76.20.

Forex Update

Forex Update

UK data just out shows December mortgage approvals at 52,939 which is the highest since Dec 2009 but still short of the expected 53,700.UK Dec consumer credit came in at -£0.4 billion (expected +£0.4 billion) versus + £0.4 billion Nov. This latest post is the lowest figure since 1993 and unsurprising given the tight lending conditions but is hardly going to get the UK moving again. The Pound is little changed on the news as I type.

Expect more of the same trading patterns today as dealers await fresh news.

And tonight the mighty Shrimpers travel away to one of our bogey teams, Swindon, in search of another 3 points. Just thought I’d let you know ‘cos we’re on this journey together eh?!

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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