Mike Paterson’s daily Forex brief
European stock markets rose this morning after a weekend poll in Greece showed growing support for a pro-austerity conservative party. The survey suggested the New Democracy party could gain about a quarter of the votes, leaving it as the biggest party albeit without overall control after the elections to be held on 17 June. London, Paris and Frankfurt markets all rose over 1% giving the Euro an early lift but in the past hour or so we've seen those gains prove to be short lived.
Focus has been on Spain's Bankia, which late on Friday asked for an injection of â‚¬ 19bn euros in state support, but whose shares have fallen 27% so far today. EURUSD was up to 1.2624 but has capped out and now looks to be heading back to test the 1.2550 line. EURGBP has been down below 0.7990 (GBPEUR up to 1.2515) but once again didn't like it down there and has since rallied to 0.8032.
The Pound continues to be a mixed bag, affected as much by the movement of other currencies as any great direction of its own, although there is little doubt that the gloss remains off for the moment. The biggest example being GBPAUD which has once again failed to hold above 1.6100 and retreated to 1.5886 overnight.
The US Dollar remains the currency of choice and it will be interesting this week to see how month-end flows change or exacerbate this sentiment.
Former UK PM Tony Blair, now revealed to be a godfather to one of Rupert Murdoch's children, appears before the Leveson Inquiry today, which should make interesting viewing on a squirm -count factor if nothing else.
No data of note out today so we can expect some Monday malcontent with areas of Europe and the USA away for bank holiday celebrations while the UK looks forward to its extended Jubilee hols next week.
Congrats to Harlequins who won their first ever Rugby Union Premiership title by beating Leicester 30-23 and to Luke Donald for returning to No.1 in the world rankings after victory in the PGA Championship at Wentworth. I wonder, though, just how many of his eons of weeks with that coveted position he'd swap for a BBC Sports Personality of the Year Award.
And England's cricketers have put themselves in a strong position to finish off the West Indies today after a spirited fight-back from the visitors was totally undone in the last session yesterday and they now have 6 wickets down for a lead of just 3.
Have a good week everyone.
Interbank Rates 08:43 BST
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.