Traders continue to hope that the EZ will deliver tomorrow.

Mike Paterson’s daily Forex brief

Given the ever-tightening ranges it looks like traders are now content to wait and see what happens on Wednesday with arguments being delivered both sides as to whether we will indeed get an agreement of any substance.

There does however seem to be an undeniable hope though that the EZ will deliver something of note and we’ve seen a continued buying of EURUSD on the dips but the pair has yet to break up through key resistance around 1.3950. GBPUSD though has now broken up through 1.6000 after a couple of false attempts yesterday. Whether we can sustain these gains still remains firmly in the balance but the momentum is definitely pointing higher at the moment. I remain unconvinced but as the old saying goes, albeit rather pithily, “the trend is your friend”.

More sell orders around on EURUSD to 1.3960-70 but stop-loss buying above there should see an accelerated move through 1.4000.

Overall the Pound has done little of consequence and, apart from a little wobble last night after the EU Referendum vote which saw the biggest Tory revolt ever on this topic, we’ve been seeing decent consolidation from a market that probably got itself over-sold after the latest round of QE.

EURGBP trades in ever-decreasing circles around 0.8700 which won’t continue after tomorrow so get your orders in whichever side of the price you need.

Stocks and gold continue to look perky as the mood of optimism/blind faith continues while commodity currencies also continue to enjoy some support.

Various bits of data out today starting with UK Current Account at 09:30 and BOE Governor King speaking shortly after.

Traders may have hit a bit of a wall but rest assured there’s some more action to come before we finally get to hear the EZ spout forth and chaos and mayhem return in force.

Meanwhile I’m away now ‘til Friday but do let me have any orders you wish to place and questions re strategy.

Today's Data:

Live Economic Calendar Powered by Forexpros – The Leading Financial Portal

Weekly Economic Calendar–HERE

Interbank Rates as of 08:35 BST

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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