Another hump day, another mixed bag
Wednesday 6 March 2019
Yes folks, it's Wednesday already but markets and traders continue to second-guess and FX pairs continue to trade tightly. US data risk today in the form of Trade Balance and ADP Employment Change while the BOC delivers its latest interest rate/policy statement.
GBPUSD has been down further to look at 1.3100 helped by some Brexit-based selling after failing at the decent 1.3200 offers post-UK services PMI data which came in better than expected. Subsequent rallies have failed at 1.3180.EURGBP has been up to 0.8646 (GBPEUR down to 1.1566) on the GBP selling finally breaking through the 0.8620--30 area I've been highlighting. Some EURUSD supply and GBPUSD demand saw an equally rapid retreat and we've been down to 0.8577 (GBPEUR up to 1.1660).
I remain GBP bearish overall and continue to rally-sell. I've also pointed out that equally there are plenty in favour of buying dips at the moment too so I continue to see good two-way business.
EURUSD has finally broken down through 1.1300 but bids at 1.1280 have provided good support so far although the pair is still looking soggy.USDJPY failed again to make head way higher with the latest rally peaking at 112.14 but equally that importer demand still providing support.
USDCHF remains underpinned but has broken up to test 1.0060 with EURCHF still tightly bound and EURUSD falling. AUDUSD has fallen through 0.7050 on some weak GDP data which should have surprised no one and added to the conjecture that a RBA rate cut is on its way and that's adding to the downward pressure on the Aussie$.
USDCAD remains underpinned but pausing for breath a little as traders await today's BOC decision which is expected to be a hold on rates but with dovish tones.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Have a good day one and all.
Interbank Rate 08.36 GMT