Mike Paterson’s daily Forex brief

Groundhog Day or what? No prizes for guessing that EURUSD is still in a range of, yep, 1.2980-1.3050, GBPUSD 1.5470-1.5550, EURGBP 0.8385-0.8420 and EURCHF 1.2180-1.2220. Get the picture?

Only real move in Asia was a sharp dip lower from the highs after it was announced that the North Korean president had passed away and ECB president Draghi once again reiterated his position to stick to the mandate and not get involved with large scale bond buying. Talk that the German Finance Minister said they would pay their full amount to the ESM (European Stability Mechanism, the permanent replacement for the EFSF) gave a little cheer and had brought some buyers back in the market prior to the down move but that’s about all I can report.

There is still the concern that S&P will downgrade France but the rumours that I reported of a Spanish downgrade on Friday evening boiled down to a notch lower for the Canary Islands . Yep, you read correct!

Equities and commodities are still looking a little vulnerable but difficult to make a full assessment when there’s nowt going on.

FX Update

FX Update

Little in the way of data today to move things along either but we must avoid getting complacent  FX markets don’t stand still for long even if it is Xmas week  Whether the breakout will be up or down is still a coin-flip though. ECB President Draghi is due to speak this afternoon but unlikely to wander too far off the hymn sheet so it will be down to end of year position squaring and the usual mix of rhetoric spewing off the newswires.

Have a good, and hopefully festive, week out there.

Today's Data:

10.00-EU- Eurozone Trade Balance

13.30-US- CPI

17.00-US- FOMC Member Fisher speaks

Interbank Rates as of 08:20 BST

Current Price

Overnight

High

Low

EUR/USD

1.3027

1.3050

1.2982

GBP/USD

1.5497

1.5550

1.5465

EUR/GBP

0.8405

0.8415

0.8384

GBP/EUR

1.1900

1.1925

1.1882

GBP/CHF

1.4523

1.4565

1.4503

GBP/AUD

1.5584

1.5644

1.5538

EUR/CHF

1.2202

1.2223

1.2180

GBP/HKD

12.0148

12.0559

11.9900

EUR/HKD

10.0960

10.1463

10.0545

GBP/ZAR

12.9579

13.1086

12.8370

USD/JPY

77.88

78.17

77.61

GBP/CZK

3.0098

3.0285

3.0034

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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