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  • Writer's pictureMike Paterson

Better risk plays prevailing but jury remains out

Thursday 16 January 2020

Yesterday saw the official signing of the US-China Phase One trade agreement and while it's not a lot more being brought to the table other than a truce we're seeing some better risk sentiment in most corners but CHF demand still notable after the SNB were called out as currency manipulators earlier in the week. China GDP out tonight (17th) is an interesting data risk as are various US numbers later today. ECB's Lagarde also speaking at 18.00 GMT.

GBPUSD has been up to 1.3065 helped by some GBPJPY demand and USD generally failing to rally. Another rally-sell opportunity in theory but some caution required for the moment.Good two-way business/pips to be had still I believe though.EURGBP has been tightly bound again as core pairs move mostly in tandem while GBPJPY rallied to post fresh recent highs of 143.78 and remains underpinned having found support around 143.00 again.

I stay poised to sell GBP rallies and buy back in the dips as ever but still see some good two-way business as we continue in these tight ranges..

EURUSD has also rallied to finally break up through 1.1150 and post 1.1164 while USDJPY has held the 109.80 bids/support line and now pinned down around 110.00 .EURJPY has also rallied on the better risk (FX markets ever fickle) and remains underpinned still.USDCHF continues its retreat to post 0.9627 with sellers currently prevailing again amid the fallout from the US Treasury Report finally calling out the SNB as currency manipulators earlier in the week. EURUSD rally also helping to push it lower as EURCHF remains tightly bound albeit softer on the CHF demand.

AUDUSD remains tightly bound with good demand/support at 0.6880-85 and now 0.6900 helped by the return of some AUDJPY demand while USDCAD has fallen through 1.3050 on some general USD supply and CADJPY demand.

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

Have a good day out there one and all.

Interbank rates: 08.23 GMT

GBPUSD   1.3042

EURUSD   1.1153

EURGBP   0.8552

GBPEUR   1.1692

GBPAUD   1.8870

GBPCAD   1.7012

GBPJPY   143.41

GBPZAR   18.7776

GBPHKD   10.1138

USDJPY   109.95

USDZAR   14.3887

EURJPY   122.64

EURCHF   1.0742

EURHKD   8.6502

AUDUSD   0.6911

USDCAD   1.3042

USDCHF   0.9628

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