Better risk sentiment prevailing as another week gets underway
Monday 25 November 2019
Mixed news on US-China trade talks but markets are enjoying some risk-on sentiment that's seeing safe-haven currencies and gold lower and equities firmer.
As always I believe that fragile and fickle conditions continue to prevail globally overall but we can only trade what's in front of us. As i also repeat on many occasions. Don't over-analyze and don't get greedy. FX pairs going nowhere in a hurry still but opportunity still if you're patient.
GBPUSD has held 1.2820-25 in its latest retreat and that has become a decent line on the sand as we continue to range but sellers still remain poised.EURGBP has failed into 0.8600 ( GBPEUR support 1.1630) and retreated to test 0.8550 (1.1695) again as GBPJPY and GBPCHF demand help to underpin the Pound. GBPJPY also continues to see good two-way trading amid the variable risk plays but tightly bound still.
I will continue to rally-sell GBP as my preferred strategy overall too amid the ongoing Brexit/Election uncertainty but happy to buy back in the dips as ever. In essence the general uncertainty and can kicking continues and for me that's still Pound negative. Remember we're ranging still so don't get too greedy whatever your bias.
EURUSD remains tightly bound but on the back foot still AT 1.1020 amid some general USD demand and topside option expiry interest helping to cap rallies over the past few days as I've been highlighting. USDJPY remains underpinned, now above 108.50, on the general USD buying and better risk plays but equally finding rally sellers poised around 109.00 still as the range stays tight. USDCHF remains underpinned as well on the stronger USD/risk combo and with the SNB being ever vigilant but tempered by some EURCHF supply with the Euro generally on the back foot.
AUDUSD remains on the back foot but tightly bound with those 0.6785 option expiries last week (and again today and now some renewed AUDJPY demand helping to support. USDCAD continues to trade tightly at 1.3290 too amid the variable USD/risk sentiment but firmer oil prices helping to cap.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
With the soggy Shrimpers losing 0-4 at home in another dire performance and England's cricketers throwing away a promising start to the First Test versus NZ it's not been the best week-end sport-wise but hey, onwards and upwards..!
Have a good day/week out there one and all.
Interbank rates: 08.17 GMT