Mike Paterson’s daily Forex brief

All change in this fickle FX world!

Just as we think the SNB have got it sussed and the market on the run they turn around and back off further market action and then the Economics Minister says they'll have to live with a strong Swiss Franc. Err, what sorry??

Cue a new surge in CHF purchases with EURCHF and GBPCHF falling 300 points, also giving impetus for a fall back in EURUSD and EURGBP, the former now looking to test strong support around 1.4280 having failed to hold above 1.4450 and the latter down 70 points from yesterday's high of 0.8889 (GBPEUR 1.1255).

Also weighing on the Euro was a rumour that Greece had hired a law firm to look into a way out of the Eurozone, but since denied. Going to be a few fellow members’ states with interest in that one.

GBPUSD has also fallen as a few USD buyers emerge again but there's a few buy orders lined up around 1.6200 and 1.6180

Weaker than forecast Manufacturing PMI from the Eurozone and UK have given cause for another sell-off as I type but nothing too dramatic at this point. Usual ACB buying interest on EURUSD around 1.14285 again.

The Aussie $ has found a few buyers again as RBA Governor Stevens seems to have ruled out an early interest rate cut;

So a new month and hopefully and bit more liquidity to emerge over the next few days, not that it's going to help make any more sense of these moves any time soon. With all major nations in serious trouble (China too if the rest of us go down) the titanic battle for the ultimate wooden spoon continues.

Today's Data:

Weekly Economic CalendarHERE

Interbank Rates as of 08.48 BST

Current Price

Overnight

High

Low

EUR/USD

1.4309

1.4386

1.4290

GBP/USD

1.6230

1.6275

1.6210

EUR/GBP

0.8814

0.8859

0.8803

GBP/EUR

1.1343

1.1361

1.1287

GBP/CHF

1.3000

1.3135

1.2980

GBP/AUD

1.5149

1.5225

1.5129

EUR/CHF

1.1454

1.1625

1.1444

GBP/HKD

12.5850

12.6180

12.5680

GBP/ZAR

11.3622

11.4170

11.3050

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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