Caution the byword once again
Wednesday 15 January 2020
Today see the official signing of the US-China Phase One trade agreement at 16.30GMT so we'll get that elephant out of the room but whether we'll see much of the real detail remains to be seen. Global uncertainty continues to be the backdrop and markets/FX pairs are suitably fragile still. UK inflation numbers at 09.30 GMT are today's immediate data risk/focus with US PPI and Empire State at 13.30 GMT
GBPUSD held 1.2960 helped by those GBP1.1bln in expiries today at 1.2960-65 that I highlighted. We then saw 1.3000 finally give way too encouraging buyers to take the pair up to 1.3043. Another rally-sell opportunity to me but good two-way business still being had.EURGBP has fallen through 0.8550 as the GBPUSD rally outstrips EURUSD but demand at 0.8530 holding the fall so far as we wait on inflation data. GBPJPY found support at 142.50 ahead of the GBP-led rally to 143.43 but since finding support around 143.00.
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 remained in a comatose state being contained in that 1.1100-50 range still. USDJPY broke up through 110.00 again but ran into sellers again helped by some softer risk plays. Still finding support at 109.80-85 though.EURJPY has also been in tight range amid the variable risk/core pair action but mostly underpinned still.
USDCHF has dip buyers still but sellers currently prevailing again amid the softer risk and the US Treasury Report finally calling out the SNB as currency manipulators.
AUDUSD remains tightly bound with good demand/support at 0.6880-85 still but some AUDJPY supply helping sellers after those A$1.6bln in expiries yesterday at 0.6900-05 rolled off. USDCAD has also been tightly contained and holding 1.3050-80 again with oil prices still steady relative to the recent spike/retreat.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Don't forget that I offer 1-2-1 mentoring if there's areas of trading these tight ranges, or how to make best use of the order boards and expiries, that you might need some further help with.
Have a good day out there one and all.
Interbank rates: 08.25 GMT