Mike Paterson’s daily Forex brief

Nothing much to report again as traders have little to feed off and have the added excuse of the US Independence Day holiday to sit on their hands or head to the pub.

EURUSD sits in an ever tightening range of 1.2570-1.2615, EURGBP is still around 0.8040 (GBPEUR 1.2438) while GBPUSD has broken down through support at 1.5650 but failed to make any further headway at this stage.

Rightly giving the Pound a few jitters is today’s main event, former Barclays CEO Bob Diamond’s testimony to the UK Treasury Select Committee over the LIBOR (London Interbank Offered Rate) fixing scandal where he is now widely expected to use the opportunity to try and bring a few players down with him. There will undoubtedly be a few senior figures at the Old Lady, The City and Whitehall who will be sitting rather uneasily this morning.

On Tuesday Bob Diamond implicated the Bank of England in the scandal by revealing details of a phone call he had with BoE Deputy Governor Paul Tucker that ultimately led to some Barclays staff attempting to fix the LIBOR rate in their bank’s favour. Other banks were also involved and we’ll learn more later for sure.

Eurozone data out this morning brings us final Q1 GDP and Retail Sales but it’s hard to imagine they’ll have much impact.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

Stocks and Gold are firming up again with the FTSE holding above the 5650 level I mentioned yesterday and Gold’s hanging onto gains above $1600.

Andy Murray looks in good touch but has another tough match in today’s quarter-final v David Ferrer while England take on the Aussies again in the 3rd ODI match at Edgbaston and Villas-Boas gets another chance in the Premier League, this time with Spurs.

Happy Independence Day hols to all our friends from across the pond.

Interbank Rates 08:50 BST

Currency Pair

Current

Overnight

High Low
EUR/USD 1.2581 1.2609 1.2575
GBP/USD 1.5638 1.5694 1.5635
EUR/GBP 0.8047 0.8047 0.8027
GBP/EUR 1.2427 1.2459 1.2425
GBP/CHF 1.4928 1.4964 1.4926
GBP/AUD 1.5222 1.5269 1.5188
EUR/CHF 1.2011 1.2014 1.2009
GBP/HKD 12.1241 12.1675 12.1218
EUR/HKD 9.7563 9.7928 9.7294
GBP/ZAR 12.6896 12.7335 12.6258
USD/JPY 79.77 79.90 79.58
GBP/CZK 31.6865 31.8679 31.6517

Today’s Data: BST

09.30-UK- Services PMI 10.00-EU- Eurozone GDP / Eurozone Retail Sales / US Holiday (Independence Day)

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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