Brexit in focus still as EU summit looms
Tuesday 16 October 2018
Apologies for lack of update yesterday due to some internet gremlins but normal service now resumed.
Important UK cabinet meeting the focus this morning where PM May will attempt to get everyone on side ahead of tomorrow's key EU summit amid renewed talk of rebellion.
GBPUSD has been down to 1.3082 and back up to 1.3198 on the uncertainty with UK wages and jobs data also in the mix at 09.30 BST. Sell interest now poised at 1.3200 and 1.3220 then 1.3250 again with the larger resistance area/sell interest still between 1.3280-00 with barrier option interest at 1.3300 expected to be defended should we get close. Immediate demand now around 1.3160 with larger interest into the 1.3130-40 area then 1.3100 and 1.3080 still. I remain a GBP rally seller for the moment but with a little caution still and happy to buy back in the dips.
EURGBP has been up to 0.8826 (GBPEUR down to 1.1330) and remains supported around 0.8780 for the moment. Sellers poised now around 0.8800 then 0.8830 and 0.8850. Bids/support around 0.8780 then larger between 0.8750-60, 0.8730 and 0.8700.
EURUSD has failed above 1.1600 again but equally has support into 1.1550 still with large option contract interest rolling off there again today .Decent bids/support now around 1.1575-80 then that larger interest between 1.1550-60 then 1.1520 and 1.1500 with sellers now poised at 1.1600,then 1.1620-30 and 1.1650 still.
USDJPY has found a bit of dip demand into 111.60 demand/USD supply tones but continues to range tightly.. Bids/demand now around 112.00,111.85 and 111.60 still with sell interest into 112.30 then 112.50 still. I remain a rally seller. USDCHF has also found buyers in the dips helped by EURCHF demand but equally sellers above 0.9900. EURCHF demand now around 1.1430 and 1.1380-1.1400 again with sellers between 1.1480-1.1500 still. USDCHF bids still at 0.9860 and 0.9830 with sell interest around 0.9900, 0.9930 and 0.9960 again. I remain a dip buyer on both.
AUDUSD still remains tightly bound between 0.7100-50. Immediate demand at 0.7100, 0.7080 then 0.7045-50 with sellers poised around 0.7150 again then 0.7180 and 0.7200. USDCAD has been flatlining after rallying back up to 1.3050 where I highlighted sell interest in my Friday update. Immediate sellers now at 1.3030 then 1.3050, 1.3080 and 1.3100 still with buyers around 1.2980,1.2960 and 1.2930.
Fickle Forex markets ever prevailing so get your orders in to take full advantage of these moves.
Saturday saw the mighty Shrimpers of Southend United travelling across the Thames to take on "local" rivals Gillingham and brought back all 3 points, watched by my brother Steve for the first time in over 40 years having left Essex for foreign shores aged just 23. A good day had by all. Congrats to England on an impressive win in Spain last night too.
Have a good day out there one and all.
Twitter: @MSPFX and @MikePatersonFX
Interbank Rate 08.35 BST