• Euro rallies on EU Recovery Fund plans

    e've still got the backdrop of US-China tensions, China-HK, and COVID 19 fallout concerns but yesterday

    saw the Euro grab some headlines as the EU Commission proposed a larger than expected Recovery Fund package of €750bln rather than the previously Merkel-announced €500bln. The new proposals are a mix of €500bln grants and €250bln loans but it all still has to be ratified and already we've heard some dissenting noises.Either way the Euro caught a bid across the board albeit with some reality-check retreats.

    The Pound also saw another wobble on more Brexit talk spats and BOE governor Bailey not ruling out further interest rate cuts.A raft of US data today at 12.30 GMT includes, weekly jobless claims, GDP and Durable Goods and may yet excite the algos if any big surprises.

    GBPUSD fell to test 1.2200-20 on the Brexit/Bailey/firmer EURGBP combo before seeing a rally to look at 1.2280-85 and more re-sells placed as per my earlier tweet.Still some dip demand to be expected on month-end flows but good two-way pips to be had again meanwhile I think. EURGBP duly held 0.8900 helped by those large option expiries and with month-end demand in play as per my udates here then accelerated higher on the bearish GBP/bullish EUR news before failing at 0.9000 ( 1.1110) and that remains a decent EUR cap/GBP support for the moment.GBPJPY failed at 133.00 again and fell to 131.65 as GBP came under attack.Decent rally on since as core pairs both found dip demand but sellers lurking at 132.50 and capping so far.

    I stay poised to sell GBP rallies overall and buy back in the dips as ever but patience continues to be a virtue and entry level key as always. Caution advised as we head into month-end flows though.

    USDJPY duly failed into 108.00 again but finding some dip buyers on the general USD demand. EURJPY rallied on the general EUR demand/better risk combo before finding more sellers around 119.00 but decent dip demand since. EURUSD fell below 1.0950 but held 1.0925-35 where we had that large option interest before finally cracking 1.1000 on the Recovery Fund news but ran into sellers at 1.1030-35 only to retreat below 1.0990 into options expiry time as I tweeted/warned with those large expiries in play. Another rally since but seems 1.1035 a decent line in the sand.

    USDCHF is holding 0.9680 again after we saw a surge on the EURCHF rally helped by more intervention talk from SNB's Jordan. No surprises but it appears they took good dvantage of the EUR demand generally to push EURCHF up to test 1.0700 only to fall back to 1.0630 where there now seems a new line in the sand.

    AUDUSD tried to hold 0.6650 where we had some option expiries but the break below 0.6630 triggered stops as the larger 0.6590-00 expiry interest became the target and duly smashed. Rallies have been limited since but good-two price action still to be had. USDCAD had a decent roller coaster ride of its own amid the variable USD/oil/risk combo and from 1.3730 we failed at 1.3820 only to fall back to from whence it came before another bounce.

    You don't need me to tell you that there's lots going on right now, and the foreseeable future, so don't forget to take advantage of my 1-2-1 mentoring sessions if there's areas of trading these volatile 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: 08.15 BST

    GBPUSD 1.2268

    EURUSD 1.1007

    EURGBP 0.8970

    GBPEUR 1.1147

    GBPAUD 1.8555

    GBPCAD 1.6886

    GBPJPY 132.28

    GBPZAR 21.3588

    GBPHKD 9.5129

    USDJPY 107.81

    USDZAR 17.4465

    EURJPY 118.66

    EURCHF 1.0657

    EURHKD 8.5341

    AUDUSD 0.6611

    USDCAD 1.3763

    USDCHF 0.9683

    0 Comments

social_rss_box_orange
official partner advert

Proud supporter of

tel
emailsymbol

Call us today: +44 (0) 1732 700 383

Bringing You The Best Value Currency Deals

Raising the Standard in Foreign Currency Exchange & International Money Transfers

Office hours : Monday to Friday - 8am till 6pm

The MSP Update

Photo crop (passport)

Welcome to my blog

Daily market commentary from
Mike Paterson

The MSP Update is an essential tool for personal and business clients who want to be kept informed on a daily basis. If you would like to discuss your requirements then give us a call and talk to one our experienced team..

Call today +44 (0) 1732 700 383

Find out how much you could save today

Don’t let the banks or your existing foreign currency broker cash in with poor exchange rates and extortionate fees, Whether you are making a small or large, one-off or regular money transfer , MSP FX will offer the best rates for your individual foreign currency requirements and assist you in transacting at the most opportune moment possible given your timeframe. MSP Foreign Exchange Services offers complete security of funds by executing trades only through preferred FSA and HMRC regulated providers. For more information call us today and find out how MSP FX can help you.

Euros-1024x683
003-paradise-island-x

You are viewing the text version of this site.

To view the full version please install the Adobe Flash Player and ensure your web browser has JavaScript enabled.

Need help? check the requirements page.


Get Flash Player