Mike Paterson’s daily Forex brief

With little movement of note we've seen the Euro continue its weaker trend in lack-lustre markets despite many analysts saying it's over- sold and due a rebound.

EURUSD still attracts sellers on the rallies and is at the lower end of the recent range at 1.2530 but there appears to be some good support around 1.2500-10. This is proving frustrating to the bears who know that if 1.2490 can break we're in for an accelerated decline. No one wants to go long of the pair just yet but the longer we hang around here then we might just see another upward correction. 1.2625 remains a key resistance level but plenty of sellers in waiting.

EURGBP has made another attempt lower without any real impact but like EURUSD seems to have a few sellers queuing up to match the buyers below. Bear in mind the natural month-end buying that we see on this pair as the Bundesbank converts the UK’s EU contribution.

One of the biggest movers has been EURAUD which has seen another sell-off and this has also made a further dent in GBPAUD down to 1.5873. Overall though the Pound is very much in limbo right now.

Stocks and Gold are once again off their early morning highs but they too are going nowhere fast.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

Little in the way of data today to liven things up so we can expect another scrappy day out there.

England's cricketers duly completed a 2-0 series winning lead against the West Indies but will need to be more ruthless when they face the far bigger prospect of South Africa later in the summer.

And surely I can't be alone in thinking we're being fed a real “you will enjoy this ‘cos the tournament's costing you a fortune and we've got to try and justify it somehow" campaign for the Olympic torch relay. I don't doubt it means a lot to those taking part but do we really need the mass-media hysteria? Someone's put the word out surely………….

Interbank Rates 07:17 BST

Currency Pair

Current

Overnight

High Low
EUR/USD 1.2530 1.2549 1.2510
GBP/USD 1.5677 1.5687 1.5654
EUR/GBP 0.7993 0.8002 0.7988
GBP/EUR 1.2508 1.2530 1.2495
GBP/CHF 1.5032 1.5049 1.5018
GBP/AUD 1.5890 1.5979 1.5873
EUR/CHF 1.2018 1.2023 1.2015
GBP/HKD 12.1544 12.1621 12.1365
EUR/HKD 9.7173 9.7335 9.6859
GBP/ZAR 13.0501 13.1096 13.0321
USD/JPY 79.50 79.65 79.41
GBP/CZK 31.6557 31.7786 31.5751

Today’s Data: BST

11.00-UK – CBI Distributive Trades Survey

13.00- EU – German CPI

15.00-US – CB Consumer Confidence

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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