Mike Paterson’s Daily Forex Brief
After a day watching paint dry pending an announcement from the Eurogroup/IMF on the Greek bailout deal we finally got the news in the early hours of this morning that, guess what, no decision had yet been made.
Eurogroup head Jean-Claude Juncker said that progress had been made though and they would be meeting again on Monday after the EU summit (What, another one? Ed.). German Finance Minister Schaueble was more emphatic in his comments saying they still had a bit to do and definitely no agreement reached yet.
Cue a rapid collapse in the Euro in thin Asian markets with EURUSD falling from 1.2822 to 1.2736 where once again it found decent support and has since bounced back toward 1.2800.
EURGBP fell from 0.8050 to 0.8006 (GBPEUR up to 1.2493) but that too found some decent buying interest again down there and has rebounded to 0.8035 (1.2445).
The Euro has also found some support this morning from a rapidly weakening Yen after the BOJ issued a very downbeat assessment on the economy and said that it plan to add more stimulus. No great shock there but enough to drive USDJPY up through 82.00 knocking out strong barrier option resistance and forcing traders to run for cover. EURJPY has risen 100 pips to 105.06. Similarly GBPJPY is up 100 pips at 131.00
GBPUSD once again has been the cross-pair vehicle trading in a 1.5882-1.5931 range and overall the Pound is a little better supported. BOE MPC Minutes just out showed a 9-0 vote to keep rates on hold and 8-1 to maintain QE at Â£375 billion. The Minutes recorded a view that rates were not likely to be cut again in the foreseeable future. No shocks in that and the Pound is little changed, but there is talk of an ACB putting a cap on GBPUSD in the move up.
We can only hope for a bit more action in our trading day but it will get thinner as the US winds down for the Thanksgiving holiday tomorrow.
This morning we learn that Chelsea have sacked manager Di Matteo after a run of poor results and the early money is on Rafael Benitez to take over til the end of the season. What Abramovich wants he usually gets, then sacks of course too…..
The Shrimpers thumped in 4 goals again for the second game in succession so it looks like they’ve finally worked out what those white posts and crossbar are for.. Hurrah!
I shall be out from midday attending a funeral but back at my desk tomorrow.
Interbank Rates at 08:45 BST
Today’s Data: BST
09.30-UK – BOE MPC Minutes / PSNBR
13.30-US – Weekly Jobless Claims
14.55-US – Michigan Consumer Sentiment
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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 firstname.lastname@example.org
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.