Mike Paterson’s daily Forex brief

In a bid to halt the slide in certain European stocks, and put paid to those nasty speculators, Spain, France, Belgium and Italy have announced a ban on short-selling of banks and financial institutions for the next two weeks. i.e. you can only sell if you physically have the stock to do so. This will have little impact on each of those countries' debt problems but hey, it makes them feel a little more sound in their beds at night. Bless 'em.


Currency markets have been somewhat subdued given the rest of the week's crazy moves but we've still seen decent volatility in reduced ranges. EURUSD has the usual Asian buyers around 1.4150 and strong technical resistance at 1.4290-4300. EURGBP has stayed below 0.8800 overnight but has decent support between 0.8730-50.

Yesterday's extended SNB measures have done the trick for the time being with EURCHF up above 1.0850 and GBPCHF therefore higher at 1.2360. Elsewhere the Pound is still in the mix with GBPUSD sellers around 1.6250 and buyers between 1.6130-50 and other GBP rates much as we found them yesterday.

No UK data today but we have Eurozone Industrial Production this morning while this afternoon brings us Retail Sales figures from the States.

It's Friday so we have to think this is the calm before the next storm unfolds, both in the markets and on the UK streets….

Meanwhile fellow Essex-boy Alastair Cook helps himself at the table again with a glorious unbeaten 182 to set-up what should be another comprehensive victory at Edgbaston. Balmy days indeed for the Barmy Army.

Have a good week-end all.

Today's Data:

Weekly Economic Calendar-HERE

Interbank Rates as of 08.45 GMT

Current Price

Overnight

High

Low

EUR/USD

1.4182

1.4259

1.4149

GBP/USD

1.6170

1.6244

1.6165

EUR/GBP

0.8769

0.8782

0.8744

GBP/EUR

1.1401

1.1438

1.1387

GBP/CHF

1.2286

1.2417

1.2208

GBP/AUD

1.5719

1.5809

1.5670

EUR/CHF

1.0786

1.0890

1.0684

GBP/HKD

12.5370

12.5940

12.5330

GBP/ZAR

11.7138

11.8185

11.6227

Agree or disagree? Then please leave a comment in the box below or contact me by e-mail.

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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