Mike Paterson’s daily Forex brief
Well, we’ve seen the two-way business that I anticipated yesterday prompted by rumours yesterday morning that the Bundesbank would not be accepting certain sovereign debt from some of its EX partners such as Portugal.
This was later denied but not before EURUSD had a reversal from previous gains and got sold off below 1.3300 and almost testing key support at 1.3250. GBPUSD joined in on this risk-off sentiment and dipped to support at 1.5980 before both recovered and now sit where we came in yesterday with the USD taking most of the brunt.
USDJPY has fallen sharply again to 81.54 but found fresh buyers and has rallied above 82.00 but it seems a fragile recovery at present.
EURGBP fell on the Euro shakeout and had a brief look below 0.8300 (GBPEUR up through 1.2050) but has since found some buyers in lacklustre trading.
Last night the RBA left Aussie interest rates on hold but hinted that they might cut next time and the Aussie $ got a little slap but has since steadied.
Key event today will be the release tonight of the Fed’s FOMC Minutes which may spring a surprise or two.
All in all though expect more of the same scrappy stuff ‘til then.
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