Mike Paterson’s Daily Forex Brief

He knows if you’ve been bad or good but it’s not just Santa who’s on his way as any apparent budget agreement seems further and further away.

The blame appears to be coming down the chimney of Republican House Speaker John Boehner but there’s still hope that a watered down stop-gap version of what’s been on the table can be implemented in what can only be considered an exercise in damage limitation.

Any how it’s still risk-off mood prevailing as traders take a break and close their books for the festive season with the Pound and Aussie taking most of the hit.

GBPUSD is down to 1.6173, EURGBP up to 0.8155, having capped so far at 0.8162 where decent resistance is expected, and GBPCHF down to 1.4810. But the over-bought Aussie dollar is having a worse time of it having been down to 1.0385 versus the greenback driving GBPAUD up to 1.5567.

EURGBP should remain well supported due to the usual month-end flows with sellers appearing on GBPUSD rallies too.

EURUSD has flirted with another support line around 1.3160 and is holding for the moment but these markets are thin and getting thinner by the minute and we will undoubtedly see decent moves before the year is out.

Don’t forget to place your FX orders with me before you head away if you need to deal before month-end as well as leaving your other wish-lists out for the bearded one later.

The mighty Southend United FC is now 4th in the table after an emphatic home win. but they’ve got a tough festive programme including the league leaders. Let’s just hope they can stay up longer than the Xmas decorations (boom boom!) . Come on youuuuuuuuu Shrimpers!!

MSPFX forex website

Sachin Tendulkar, “The Little Master” and the most capped player in one-day cricket with 463 games, most runs (18,426) and centuries (49) has retired from the 50-over game. Surely it’s only a matter of time before he bows out completely and we saw farewell to the greatest batsman of the modern era, and perhaps of all time.

Something to discuss after your Xmas pud whilst relatives snooze merrily in time honoured fashion. Merry Xmas one and all and I’ll be back on Thursday.

Interbank Rates at 06:44 BST

Currency Pair

Rates

EURUSD 1.3188
GBPUSD 1.6173
EURGBP 0.8155
GBPEUR 1.2262
GBPCHF 1.4810
GBPAUD 1.5525
EURCHF 1.2077
GBPHKD 12.5389
EURHKD 10.2258
GBPZAR 13.8549
USDJPY 84.33
GBPCZK 30.8250

Today’s Data: BST

Nothing of note.

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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