Mike Paterson’s daily Forex brief
Markets have assumed a “rabbit caught in the headlights” position as traders see no reason to second-guess the Greek election fall-out on the 17th June. Of course, we’ll see some kind of moves between now and then but it’s blatantly clear that it’s not only the politicians that haven’t got a clue right now.
It’s been disclosed/discovered that the Greek banks have a â‚¬100 billion facility from the ECB known as an ELA ( Emergency Liquidity Assistance) which is helping to prop them up and that Spanish banks could face losses of up to â‚¬260 billion according to the IIF (International Institute of Finance).
Good enough reasons for a little Euro sell-off you might think. But no.
We’ve seen EURUSD test above 1.2800 again and EURGBP has been up to challenge 0.8100 again (GBPEUR down to 1.2345) but so far failed to break through.
GBPUSD is still struggling to get through 1.5850 and the Pound overall is still looking top-heavy. Inflation data out at 09.30 BST might shake things up a little though.
Otherwise not much to report or expect. Stocks still look vulnerable with investors taking a lead from FaceBook. Down 11% at $34.03. $4 lower than the offer price and $9 lower than the launch day peak. A case of the Emperor’s New Clothes methinks.
Congrats to the England cricket team who beat the West Indies as expected but made hard work of it for a while, and particularly to skipper Strauss for his much needed ton and to Stuart Broad with 11 wickets to his name, the first time an Englishman has done so at Lords since 1978 and a certain IT Botham.
I guess it would be churlish then to say it was an Essex boy, Alastair Cook, who guided us safely home once again after early 2nd innings wobbles. Wouldn’t it?
Interbank Rates 07:38 BST
Today’s Data: BST
09.30-UK – CPI / RPI / Public Sector Net Borrowing / DCLG House Price Index
15.00-US – Existing Home Sales
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