Mike Paterson’s daily Forex brief
We’ve seen the Euro come under more pressure after German constitutional courts hinted that the European Stability Mechanism will be delayed until the Autumn.
EURUSD has fallen again past this week’s 2-year lows to 1.2247 dragging EURGBP below 0.7900 (GBPEUR up through 1.2658).
The bearish sentiment on the Eurozone still prevails with bond yields on their highs and Spanish austerity measures causing conflict. There seems little to lift the gloom and justifiably so.
Helping the EURGBP head lower has been a large corporate sell interest which is also providing an underlying bid to GBPUSD now camped above 1.5500 and seeing week’s highs of 1.5557. Overall the Pound is holding its own against most of the others.
Gold had another look at 1600 but didn’t like it and fell back sharply to $1566 while the FTSE has dipped back below the 5650 pivot line.
All in all we can expect more of the same with traders still not confident of holding positions for too long. Little in the way of data today but this afternoon brings the latest US trade balances.
England’s cricketers duly completed a 4-0 series win against the Aussies after another emphatic victory yesterday, this time by 7 wickets and their 10th straight ODI win. Now bring on the South Africans!
Interbank Rates 08:33 BST
Today’s Data: BST
13.30-US – Trade Balance
15.00-US – Wholesale Inventories
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 email@example.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.