All eyes on Brussels
Wednesday 9 December 2020
Yes folks, Brexit is still grabbing the headlines and the game continues to be sifting through the rubbish to find anything remotely of note. Johnson goes to Brussels today after PMQs and will have dinner with VDL at 19.00 GMT to try and see if they can both make concessions/buy some time. Meanwhile some positive take by algos/markets sees the Pound finding a few buyers again.
As I said again yesterday we have a busy and crucial few days ahead not only with Brexit talks but also the latest ECB monetary policy decision/rhetoric tomorrow and the EU Council meeting tomorrow/Friday.
COVID is still casting its sad shadow and markets are still second-guessing the fall out to come and the US stimulus package unknowns remain in the mix.Despite the general uncertainty though we are seeing another round of firmer risk sentiment as the ever fickle swings and roundabouts continue has also seen Gold and Bitcoin in retreat.
GBPUSD is on the rise again and now posting 1.3439 as I type. I'm happy to keep my powder dry for the moment amid all the hot air. EURGBP failed above 0.9100 and now 0.9060 again as we post fresh recent lows of 0.9023 amid the firmer Pound tones. I remain a dip buyer overall but still respecting the Brexit-led volatility.GBPJPY testing 140.00 again as I type as core pairs both find demand amid the firmer risk sentiment.
I stay poised to sell GBP rallies as my preferred side and buy back in the dips as ever.Patience continues to be a virtue and rally-selling in GBPUSD is still bringing some reward but entry level key as always. Definitely still expecting some dip demand amid all the volatility as I've warned for a while now. Brexit still the large elephant in the room.
USDJPY has held 104.00 but still struggling to make much headway higher amid the generally softer USD tones. EURJPY remains tightly bound too amid the sentiment and cross flows. EURUSD has staged another decent rally but ran out of puff this time at 1.2150 and still tightly bound as the jury remains out. Cross flows definitely in play. Don't forget that Brexit has EUR implications too and we have the ECB uncertainty tomorrow too. USDCHF is clinging on just below 0.8880 with EURCHF falling to test 1.0750 but with the SNB still ever watchful.
AUDUSD has finally broken 0.7450 to post 0.7472 highs not seen since July 20108 after holding 0.7400 yet again helped by those large option expiries and firmer risk AUDJPY demand.
USDCAD clinging onto 1.2775-80 again on the retreat as I type after capping at 1.2830 again amid the variable USD and risk sentiment.
Markets are ever-fickle 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.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.40 GMT