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  • Writer's pictureMike Paterson

All still very fragile out there with USD demand notable

Tuesday 2 April 2019

A quick repeat of my tweets from last night for those of you don't use Twitter but I hope you all do or will follow me @MikePatersonFX and @MSPFX.

"Market was once again getting carried away with the Remain slant to the indicative votes.The failure of all 4 sends the UK closer toward #Brexit next week with #NoDeal. #GBP lower as I warned here (Twitter) over 3 hours ago. "I still prefer to sell rallies. The fallout potential is huge."

"Ntg certain in any of this #BrexitShambles just yet tho so we'll continue to see dip demand and two-way business so taking some profit. I remain #GBP bearish overall until otherwise convinced"

Further to that update we've seen the Pound still on the back foot amid some general US$ demand with the risk sentiment jury still out.

GBPUSD had a brief look back above 1.3080 post-vote after holding the 1.3020-30 area I highlighted and I have duly resold. EURGBP has failed into 0.8600 (GBPEUR support 1.1625) but holding 0.8560 (1.1685) in its retreat Today the UK cabinet meets to discuss their options so we'll await some headlines and can expect the Pound to have another busy day.

I remain GBP bearish overall and continue to rally-sell but I continue to see/respect the two-way business as the Brexit chaos takes fresh twists and turns. If anyone needs further help to navigate through the current minefiled then do contact me for details of 1-2-1 mentoring sessions.

EURUSD has finally broken down through 1.1200 but has some more option expiry interest today to keep the range contained although it remains under pressure. USDJPY demand notable again from the JPY selling and general US$ demand.

USDCHF has also found itself underpinned still as EURUSD remains on the back foot and EURCHF finds support with the SNB remain ever-watchful.AUDUSD has found itself on the back foot since the RBA left rates on hold and kept dovish/cautious tones as expected and capping at sell interest into 0.7130 and has fallen to post 0.7064 as I type.

USDCAD has fallen further helped by firmer oil prices and CADJPY demand still. BOC Poloz comments also helped to give it a push lower to test the 1.3300 bids/support and the Canadian$ generally remains in demand.

Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.

Southend have appointed a new Manager in Kevin Bond. Frankly I think James Bond would have been a better option.

Have a good day out there one and all.

Interbank Rate 08.20 BST

GBPUSD   1.3040

EURUSD   1.1197

EURGBP   0.8586

GBPEUR   1.1645

GBPAUD   1.8437

GBPCAD   1.7375

GBPZAR   18.5636

GBPHKD   10.1099

USDJPY   111.38

USDZAR   14.2065

EURJPY   124.70

GBPJPY   145.23

AUDUSD   0.7072

EURCHF   1.1189

EURHKD   8.6818

USDCAD   1.3326

USDCHF   0.9995

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