Mike Paterson’s daily Forex brief

With month-end flows out of the way traders have been disappointed with the lack of any real positive impact on the Euro, and with the old adage of what doesn’t go up when it should must come down we’ve seen renewed weakness as the new month opens up.

EURUSD fell below 1.3300 and this morning we’ve just hit lows of 1.3245 before finding a few buyers, but there’s been little rally of note thus far. Expecting accelerated selling if 1.3220 gives way. EURGBP has traded as low as 0.8322 (GBPEUR up to 1.2018) and similarly failed to bounce very far. Support now at 0.8310 and resistance at 0.8360.

The Yen has had another sell-off after the BOJ said that the recent easing policy will continue, and this has given the Euro a little support. But none that’s made too much of an impression on its other pairs with notable selling Euro selling against the Aussie $ too.

Fed Chairman Bernanke testified again yesterday but there was little to add to the previous day’s comments that caused the big reaction, so we’re back to feeding off the scraps again in the absence of any key data today.

Forex Update

Forex Update

Conflicting statements from Eurozone ministers this morning re the Greek bailout deal have added to the Euro uncertainty along with weaker than expected German retail sales figures out a short while ago.

Gold has traded in a tight range after its dramatic fall on Wednesday as we get reports of good sell interest at $1725 coupled with buying interest around $1690.

It could be a long day. But it’s Friday, so we can rely on a flurry or two before we head for home.

Have a great week-end everyone and of course – ‘Come on you Shrimpers!

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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