Mike Paterson’s daily Forex brief

Leaders of the G8 countries got together at Camp David, had a drink and a sandwich or two and then announced that the Eurozone crisis was a serious problem, or words to that effect, and urgent attention was needed. Well, thanks for turning up everyone, see ya next time.

One other consensus though seemed to be a desire for the Greece to stay in the EZ gang and Camorama turning up the heat on German Chancellor Merkel to promote more growth and turn on the printing presses. Now it’s the turn of new French President Hollande to turn on the charm and get Merkel to withdraw her Eurobond veto.

So nothing new really but it’s stopped the Euro rot a little with EURUSD rallying as high as 1.2813 before a few ACB’s came to empty their pockets again. EURGBP has rallied further to test strong resistance around 0.8090-8100 (GBPEUR down to 1.2358) as the Pound continues to lose a few supporters.

GBPUSD has struggled to rally past 1.5850, GBPCHF has been down to 1.4844 and GBPAUD has capped again above 1.6100 although seems to be finding a little support around 1.6000.

So an interesting place to start a new week in the wonderful world of foreign exchange and with little in the way of data we’ll see whether the Euro buying is just short-covering before falling further, and the Pound’s dip is a reality check or position-trimming.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

Hats off to Chelsea who finally exorcised the demons of Moscow and lifted the Champions League trophy. But what planet is Torres on after blubbering on about how upset he was at being on the bench and the way he’s been treated. This from a £50 million footballer who went 25 hours without a goal this season and who it appears bottled it on Saturday night by refusing to take a penalty hence Matta stepping up to the plate and missing, forcing Lampard to go at 3. Ok so it all worked out with Drogba hitting the winner but what a funny/spoilt ol’ world of football.

Meanwhile back in the real world we say a sad farewell to Robin Gibb, and with his leaving so close on the heels of the legend that was Donna Summer, the world of music has lost two highly influential forces within days. But wow, what a disco they’ll be having wherever they’re headed.

Have a good week all.

Interbank Rates 08:43 BST

Currency Pair

Current

Overnight

High Low
EUR/USD 1.2776 1.2813 1.2748
GBP/USD 1.5828 1.5840 1.5793
EUR/GBP 0.8072 0.8090 0.8068
GBP/EUR 1.2390 1.2396 1.2358
GBP/CHF 1.4882 1.4891 1.4844
GBP/AUD 1.6060 1.6118 1.6026
EUR/CHF 1.2010 1.2014 1.2009
GBP/HKD 12.2714 12.2807 12.2443
EUR/HKD 9.9042 9.9374 9.8776
GBP/ZAR 13.0811 13.2470 13.0542
USD/JPY 79.29 79.34 78.95
GBP/CZK 31.2393 31.4047 31.1190

Today’s Data: BST

Nothing of note

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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