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.
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
Today’s Data: BST
11.00-UK – CBI Distributive Trades Survey
13.00- EU – German CPI
15.00-US – CB Consumer Confidence
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