• FX pairs still making their minds up as month-end approaches

    Ranges have been tight overall in the past 24 hours with little by the way of fresh news but month-end flows starting to become evident.

    Today's 4pm London fix will be dealing for month-end Spot date and we'll see some evidence of the flows which once again are calculated to be USD negative against most G10 currencies. The signal to sell USD is driven by the need of global equity investors’ to increase hedges as the gains in the US market are likely to have left them under-hedged. The EURUSD signal is reported to be the weakest due to the outperformance of the European equity and bond markets. These strong performances are likely to mean that global investors also need to sell EUR so we can expect some two-way interest.

    We've been seeing USDJPY cap already and GBPUSD and EURUSD find decent dip demand and this should be the pattern right up until the 30th June 4pm fix. That's not ruling out though that flows generally will continue to be governed by risk sentiment and options expiries but we can never under-estimate the month-end flow impact too.

    GBPUSD has found support into 1.2380 but equally finding sellers on the bounce into 1.2440.Some pips from re-sells duly banked. Rinse and repeat still.EURGBP fell through 0.9020 but held 0.9000 with those larger bids I warned about yesterday as month-demand kicks in and now up testing 0.9050 (GBPEUR down to 1.1040). GBPJPY retreated from 133.60 as USDJPY capped above 107.25 but found demand at 133.00 before having another pop lower below 132.80 as I type amid softer risk plays.

    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. I still expect to see some dip demand though.

    USDJPY capped at 107.30 and now lower at 106.95 on those early month-end flows and softer risk. EURJPY is also lower testing 120.00 from 120.50 but ranging tightly still as are core pairs.EURUSD yesterday was in steady retreat again, this time from 1.1250 to test below 1.1200 but those large expiries I warned about here and later on Twittter did their job. More at 1.1200 today along some month-end flows are seeing both dip demand but rally selling around 1.1230 again.

    USDCHF found a base at 0.9480 as EURUSD fell but failed above 0.9500 and now dropping below 0.9480 as I type as EURUSD re-tests 1.1230 but with EURCHF falling through 1.0650 but with the SNB ever vigilant.

    AUDUSD has based ar 0.6850 but equally failing at 0.6900 and since back down on the risk-off/retreat to post 0.6875 as I type after an earlier dip and hold into 0.6860. USDCAD has found a base into 1.3600 then 1.3630 since but equally can't get back above 1.3680 amid the variable risk/oil price combo with the shadow of aluminium tariffs to be imposed by the US still in play.

    Let's continue to be careful out there in all things. Staying safe must be our main priority still. Make sure you get some rest over the week-end.

    Twitter: @MSPFX and @MikePatersonFX

    Interbank rates: 08.35 BST

    GBPUSD 1.2407

    EURUSD 1.1215

    EURGBP 0.9039

    GBPEUR 1.1060

    GBPAUD 1.8023

    GBPCAD 1.6934

    GBPJPY 132.80

    GBPZAR 21.3360

    GBPHKD 9.6192

    USDJPY 107.04

    USDZAR 17.1975

    EURJPY 120.08

    EURCHF 1.0632

    EURHKD 8.6972

    AUDUSD 0.6883

    USDCAD 1.3650

    USDCHF 0.9480


official partner advert

Proud supporter of


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.


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