Mike Paterson’s Daily Forex Brief

It’s been a distinctly less than interesting 24 hours range-wise with Greece and Spain continuing to dominate the news wires but little of substance for traders to feed off.

The Euro had a brief rally when reports had Spain lined up to officially ask for aid as early as next week, and Greece seems to be winning a few friends in the Troika (ECB, EU, IMF) with talk of an agreement maybe as early as today, but we didn’t hold up there for long.

EURUSD breached 1.3000, just, but has since come back to test support lines around 1.2960 while EURGBP has finally lost its support at 0.80000 (GBPEUR resistance at 1.2500) and so far has been down to 0.7982 (1.2530).

Continuing to undermine any Euro rally, apart from the general unease with the Eurozone once again, is the SNB (Swiss National Bank) offloading its Euro purchases, accumulated in its recent defence of the 1.2000 EURCHF and its reported more aggressive purchases last week. There is talk this morning that they have been in selling EURAUD as part of their reserve diversification, and this has understandably given Euro sellers some comfort to sell again.

The Aussie $ by the same token has rallied with AUDUSD up to 1.0481 and GBPAUD down to 1.5487 before finding a few Aussie sellers. Slightly improved Chinese data overnight will have helped the Aussie too.

The Pound continues to be a mixed bag of frogs but generally firmer with GBPUSD finding some decent buyers again and holding back above 1.6200. This morning’s PSNBR data should have little impact but one item of note has been BOE Governor King effectively giving George Osborne a nod to miss UK debt targets. Watch this space….

Apart from those figures we’ve little else to guide us today so it’ll be another case of relying on the newswires to throw some excitement into the Friday mix of thin, tired markets and last throw of the dice trading before the week-end.

And talking of the week-end we can look forward to the mighty Shrimpers trying to get back to winning ways tomorrow, while today sees the start of England’s T20 World Cup campaign versus the very interesting Afghanistan side that ran India close in their opening game.  Have a great couple of days wherever it takes you.

Forex Update-The Economic Voice Limited

Forex Update-The Economic Voice Limited

Interbank Rates at 08:38 BST

Currency Pair





EUR/USD 1.2973 1.3004 1.2956
GBP/USD 1.6237 1.6268 1.6211
EUR/GBP 0.7990 0.8002 0.7982
GBP/EUR 1.2513 1.2530 1.2495
GBP/CHF 1.5160 1.5175 1.5118
GBP/AUD 1.5491 1.5562 1.5487
EUR/CHF 1.2113 1.2119 1.2093
GBP/HKD 12.5885 12.6125 12.5692
EUR/HKD 10.0603 10.0940 10.0313
GBP/ZAR 13.4229 13.5215 13.4179
USD/JPY 78.21 78.38 78.12
GBP/CZK 31.0777 31.2748 30.9734

Today’s Data: BST

09.30-UK – Public Sector Net Borrowing Requirement (PSNBR)

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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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