• Euro underpinned still amid firmer risk tones

    Markets are in happy-clappy mode again and the Euro is still finding favour in the wake of the EU Summit agreement for 750bln even there's plenty of debate still going on in the aftermath. The Pound meanwhile is ranging still and providing good two-way price action amid the generally softer Greenback and firmer commodity currencies.

    COVID, US-China tensions and Brexit continue to cast a shadow but markets shrugging it all off again for the moment.

    GBPUSD has mostly traded within the 1.2650-1.2750 range and provided excellent two-way pips. Re-sells now duly placeD into 1.2750 as per my earlier Tweet but still expecting decent dip demand. EURGBP found good demand into 0.9080 after failing above 0.9130. Month-end demand looming to add to the general Euro love-fest atm. Resistance now at 0.9135 again then 0.9150 still.GBPJPY duly held 135.30-40 and since enjoyed the better risk/core pair dip demand to post 135.60 before slipping back as I type.

    I stay poised to sell GBP rallies overall as my preferred side and buy back in the dips as ever but patience continues to be a virtue and entry level key as always. I still expect to continue seeing some dip demand but cross-flows, risk sentiment and Brexit will continue to see a mixed bag as we've been witnessing.

    USDJPY has rallied on the firmer risk Yen selling but tempered into 107.30 by the general USD supply.

    EURJPY found support into 123.00 then 123.80 but failing into 124.30 again this morning but core pairs both finding dip demand still. EURUSD continues to enjoy the current Euro love-fest/softer USD combo and having taken out found decent sell interest at 1.1550 has now challeged the 1.1600 barrier option but not breaking higher albeit with demand building at 1.1570. USDCHF broken down through 0.9300-20 as the relentless EURUSD rally continued but finding a little support into 0.9270 this morning as EURCHF still underpinned with the SNB ever vigilant in the dips.

    AUDUSD has been up to test decent offers at 0.7180 amid the softer USD/firmer commodity plays before finally retreating. Large AUD expiries on AUDNZD at 1.0695 today, mostly AUD calls, certainly in play too. USDCAD capped at 1.3480 where I warned of offers building yesterday and resumed its retreat amid the softer USD/firmer oil price combo to now test 1.3380.

    Markets are ever-fickle but good two-way pips to be had so don't forget to contact me if there's areas of these markets that you might need some further help with.

    Let's continue to be careful out there in all things. Staying safe must be our main priority still.

    Twitter: @MSPFX and @MikePatersonFX

    Interbank rates: 08.18 BST

    GBPUSD 1.2722

    EURUSD 1.1579

    EURGBP 0.9102

    GBPEUR 1.0985

    GBPAUD 1.7791

    GBPCAD 1.7030

    GBPJPY 136.25

    GBPZAR 20.9049

    GBPHKD 9.8642

    USDJPY 107.12

    USDZAR 16.4545

    EURJPY 124.01

    EURCHF 1.0752

    EURHKD 8.9796

    AUDUSD 0.7150

    USDCAD 1.3387

    USDCHF 0.9287

    Read more...

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  • Another reality-check for the Pound

    The Euro has remained underpinned, albeit after an initial wobble, since the extended EU Summit finally got an agreement on the Recovery Fund for the full EUR 750bln (still to be ratifed by EU Parliament) and amid some strong EURGBP demand and softer risk tones/GBPJPY supply we've seen another retreat for the Pound across the board.

    Talk continued yesterday that the recent big buyer was the SNB in a reserves portfolio re-shuffling and that helped keep a bid under GBP pairs initially but, as with any natural flow move, the impact leesens as the order gets filled and a more considered appraisal can resume with Brexit No-Deal and economic concerns top of the list.

    COVID and US-China tensions continue to undermine market sentiment and we've seen generally softer tones to the Greenback which has also helped boost commodity currencies but some correction going on as I finish this report.Speeches from ECB's Lagarde and De Guindos in the mix today too.

    GBPUSD continued its rally to post highs of 1.2768 helped by the EURGBP retreat to test strong support at 0.9000 but since been down to 1.2650 this morning as I type.EURGBP found good demand into 0.9000 as expected and bounced back quickly through amid the general Euro demand and now chewing through some decent resistance at 0.9100 as I type with support now building at 0.9050-60.GBPJPY failed at 136.40 and as risk appetite softened and core pairs found sellers again we've now seen a test of 135.40 after holding 135.80 for a while.

    I stay poised to sell GBP rallies overall as my preferred side and buy back in the dips as ever but patience continues to be a virtue and entry level key as always. I still expect to continue seeing some dip demand but cross-flows, risk sentiment and Brexit will continue to see a mixed bag as we've been witnessing.

    USDJPY has retreated again but still can't get through 106.60-65, a level I higlighted again in a Tweet. EURJPY found support around 122.50 and has rallied steadily to post 123.37 this morning as core pairs both find dip demand. EURUSD found support into 1.1450 and since rallied to test 1.1550 albeit slipping back a little as I type but still underpinned for the moment. Large option expiry interest expected to support further retreats but lots of cross-pair flow in play too.USDCHF failed around 0.9400 this time where I noticed decent offers yesterday but supported now around 0.9320 as EURUSD retreats and with an underpinned EURCHF still with the SNB ever vigilant in the dips.

    AUDUSD has made full use of the generally firmer risk tones/softer USD/commodity currency status combo and been up to 0.7168 before finally retreating to 0.7111. USDCAD capped at 1.3520 where I noted sell interest building yesterday and finally broke down through the 1.3480 support amid the softer USD/firmer oil price combo to test 1.3430 but rallying again as I type.

    Markets are ever-fickle but good two-way pips to be had so don't forget to contact me if there's areas of these markets or how to make best use of the order boards and expiries, that you might need some further help with.

    Let's continue to be careful out there in all things. Staying safe must be our main priority still.

    Interbank rates: 08.40 BST

    GBPUSD 1.2681

    EURUSD 1.1526

    EURGBP 0.9088

    GBPEUR 1.1000

    GBPAUD 1.7773

    GBPCAD 1.7073

    GBPJPY 135.53

    GBPZAR 20.8812

    GBPHKD 9.8192

    USDJPY 106.86

    USDZAR 16.4983

    EURJPY 123.19

    EURCHF 1.0753

    EURHKD 8.9265

    AUDUSD 0.7135

    USDCAD 1.3461

    USDCHF 0.9327

    Read more...

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  • Perky Pound amid variable risk tones

    The extended EU Summit finally got an agreement on the Recovery Fund for the full EUR 750m but not without some compromise and that's been enough to see the buy rumour/sell fact reaction for the Euro that I warned about yesterday.

    Meanwhile we have all the usual COVID, US-China concerns so it remains a fragile scenario out there but with markets generally in glass-half-full mode still but yesterday saw some concerted GBP demand with talk circulating of a large buyer investing in UK equity markets as I noted in a tweet so I hope you took heed and sellers stayed patient.

    GBPUSD has been up to 1.2717 this morning helped by supply from the EURGBP retreat down to 0.9009 but since looks underpinned around 1.2650 for the moment. EURGBP broke down through the 0.9100 support on the stronger GBP/capping Euro double whammy and fell steadIly to test 0.9000 before rallying a little. I remain a dip buyer overall but respecting the current supply. Never a good idea to stsnd in the way of natural flow.GBPJPY found a good base at 134.80 and has been up to 136.40 amid the firmer GBP/risk combo and remains underpinned.

    I stay poised to sell GBP rallies overall as my preferred side and buy back in the dips as ever but patience continues to be a virtue and entry level key as always. I still expect to continue seeing some dip demand but cross-flows, risk sentiment and Brexit will continue to see a mixed bag as we've been witnessing.

    USDJPY continues to range 107.00-50 amid the variable risk/USD tones and large option expiry interest while EURJPY has found support around 122.30 now and rallied on the EU Summmit hopes but failing at 123.00 again on the buy rumour/sell fact outcome. EURUSD found support into 1.1400 again and since rallied to test the 1.1460-70 area again but dipping as I type as cross flows continue to contain. USDCHF failed around 0.9410 this time but supported now into 0.9370 as EURUSD retreats and with an underpinned EURCHF still with the SNB ever vigilant in the dips.

    AUDUSD has finally broken up through and stayed above 0.7000 to now post fresh recvewnt highs of 0.7058 amid the firmer risk tones after finding support into 0.6980.USDCAD has capped into 1.3600 again and seen a steady retreat to now break down through 1.3500 as I type amid the softer USD/firmer oil price combo.

    Markets are ever-fickle but good two-way pips to be had so do contact me if there's areas of trading these markets or how to make best use of the order boards and expiries, that you might need some further help with.

    Let's continue to be careful out there in all things. Staying safe must be our main priority still.

    Twitter: @MSPFX and @MikePatersonFX

    Interbank rates: 09.15 BST

    GBPUSD 1.2686

    EURUSD 1.1431

    EURGBP 0.9012

    GBPEUR 1.1094

    GBPAUD 1.7988

    GBPCAD 1.7128

    GBPJPY 136.09

    GBPZAR 20.9854

    GBPHKD 9.8355

    USDJPY 107.27

    USDZAR 16.5416

    EURJPY 122.65

    EURCHF 1.0737

    EURHKD 8.8657

    AUDUSD 0.7052

    USDCAD 1.3503

    USDCHF 0.9392

    Read more...

    0 comments

  • Fimer Euro on EU Summit hopes

    Day 4 of the extended EU Summit gets underway at 14.00 GMT today but after an eventful/fraugfht week-end of talks there's been some cautious optimism over an agreement/compromise for the Recovery Fund.

    Full update from me at www.mspcurrencyservices.com

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  • Some risk-off sentiment again but jury still out

    A mixture of some risk-off tones and general USD demand has been the theme since late European trading but it's still a very mixed/confused market out there.

    Yesterday the ECB brought little to the party as expected but did pay a nod to the the EU Summit starting today as I suggested in my preview. Cautious tones on any Recovery Fund agreement still previling despite Lagarde's hopes/pressure as highligted by both Rutte and Merkel again already this morning. Brexit trade talks today as well as all the usual COVID, US-China concerns so it could be a lively end to the week.

    GBPUSD initially duly held around 1.2520-25 yesterday and re-sells and eventually placed once 1.2625 sellers helped cap the rally with the EURGBP slide once again holding 0.9050 as per my later tweet.Rinse n repeat until ranges broken but strategy remains the same. EURGBP duly held around 0.9050 again and remains underpinned helping the latest GBPUSD retreat but still capping t 0.9100 for the moment. Eyes on the EU Summit now. GBPJPY failed above 135.00 yet again as the risk-on rally faded and since been down to test 134.30 as I type.

    I stay poised to sell GBP rallies overall as my preferred side and buy back in the dips as ever but patience continues to be a virtue and entry level key as always. I still expect to continue seeing some dip demand but cross-flows, risk sentiment and Brexit will continue to see a mixed bag as we've been witnessing.

    USDJPY failed at 107.40 this time round and now down to 107.17 amid the softer risk plays while

    EURJPY has found support around 122.00 on its latest retreat from 122.50 where it failed once again yesterday amid the variable risk and upcoming EU Summmit. EURUSD failed around 1.1440 after a post-ECB/risk-on rally but since been supported at 1.1370-80 again as we wait on the EU Summit. Eyes on EU Summit headlines today and tomorrow which could lead to a gap on Sunday night's Asian opening.

    USDCHF failed around 0.9460 again but supported still into 0.9430 amid the tight EURUSD range and steady/underpinned EURCHF with the SNB ever vigilant in the dips. AUDUSD has failed above 0.7000 again but equally finding support into 0.6960. Good two-way business expected again.USDCAD continues to hold 1.3500 but equally cap into 1.3600 amid the variable risk/oil price/USD combo.

    Markets are ever-fickle but good two-way pips to be had so don't forget to contact me if there's areas of trading these markets or how to make best use of the order boards and expiries, that you might need some further help with.

    I wish you good trading and let's continue to be careful out there in all things. Staying safe must be our main priority still. Enjoy your week-end one and all.

    Twitter: @MSPFX and @MikePatersonFX

    Interbank rates: 08.45 BST

    GBPUSD 1.2544

    EURUSD 1.1385

    EURGBP 0.9076

    GBPEUR 1.1016

    GBPAUD 1.7957

    GBPCAD 1.7033

    GBPJPY 134.36

    GBPZAR 20.9678

    GBPHKD 9.7254

    USDJPY 107.13

    USDZAR 16.6930

    EURJPY 121.94

    EURCHF 1.0760

    EURHKD 8.8284

    AUDUSD 0.6983

    USDCAD 1.3582

    USDCHF 0.9452

    Read more...

    0 comments

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