Better risk sentiment helps Pound recovery but jury still out

Friday 6 September 2019

While the market tries to makes it mind up over the latest Brexit/UK government debacle we've seen the Pound make some decent gains helped by a better risk sentiment generally again. The jury remains out on both counts though as we end the week as traders and algos wait on today's US key jobs/wages data at 12.30 GMT

GBPUSD has been up to look at 1.2350 only to fall back this morning to post 1.2290 an I was happy to sell that rally after mostly watching/away from my desk yesterday. Good two-way trading still.EURGBP has been in retreat again on the GBP buying to post 0.8940 (GBPEUR up to 1.1186) but has bounced this morning on the general GBP retreat.GBPJPY has also seen some good two-way action with fresh recent highs of 132.14 posted  on the better risk sentiment/stronger Pound combo but now back down testing 131.50.

I remain GBP bearish overall and will continue to rally-sell as my preferred strategy amid all the uncertainty/indecision including Brexit/political fallout but happy to buy back in the dips as always.Rinse and repeat.Still no reason to change my view any time soon. We have turmoil in the UK and once markets see through the smoke and mirrors the picture remains a very fragile one. Some caution required atm ofc with No Deal Brexit looking less likely but this is far from over.

EURUSD made further progress higher helped by better risk plays but tempered by the EURGBP fall and we capped around the decent sell interest 1.1080. USDJPY found buyers into 106.30 and we've been up to post 107.23 helped by the better risk sentiment. Large option interest today at 107.00-05 ($2bln) and 107.25-50 should help cap rallies but the pair remains underpinned for the moment into 106.80. USDCHF has been underpinned by the EURUSD retreat but with EURCHF demand up to 1.0920.

AUDUSD continues to find a few buyers above 0.6800 helped by confirmation that HK is withdrawing the extradition bill plus AUDJPY demand again but sellers poised into 0.6850. USDCAD found sellers again helped by further CADJPY demand but currently finding support around 1.3180.

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

Don't forget I offer 1-2-1 mentoring if there's areas of understanding this latest volatility that you might need some further help with.

Mercifully I will have a pain-free week-end as the soggy Shrimpers trip to Portsmouth has been postponed due to the home side's international commitments. Phew..........!!

Have a good day/week-end out there one and all.

Interbank Rate 09.15 BST

GBPUSD   1.2296

EURGBP   0.8976

EURUSD   1.1039

GBPEUR   1.1138

GBPAUD   1.7999

GBPNZD   1.9176

GBPCAD   1.6233

GBPJPY   131.59

GBPZAR   18.1729

GBPHKD   9.5331

USDJPY   107.03

USDZAR   14.7855

EURJPY   118.15

EURCHF   1.0908

EURHKD   8.5591

AUDUSD   0.6830

USDCAD   1.3203

USDCHF   0.9881