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 € 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.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

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

Currency Pair



High Low
EUR/USD 1.2587 1.2624 1.2515
GBP/USD 1.5698 1.5718 1.5660
EUR/GBP 0.8019 0.8032 0.7988
GBP/EUR 1.2467 1.2519 1.2440
GBP/CHF 1.4995 1.5050 1.4965
GBP/AUD 1.5909 1.6063 1.5886
EUR/CHF 1.2027 1.2034 1.2010
GBP/HKD 12.1706 12.1861 12.1412
EUR/HKD 9.7623 9.7959 9.6982
GBP/ZAR 13.0266 13.1870 12.9824
USD/JPY 79.39 79.74 79.33
GBP/CZK 31.5286 31.9628 31.2650

Today’s Data: BST

Nothing of note

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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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