Cautious start to another potentially busy week
Monday 4 February 2019
The latest US NFP/wages report produced a mixed bag of stronger jobs and weaker wages and left markets still guessing but we've seen a generally firmer US Dollar as the new week gets underway. Chinese markets are closed this week for their New Year holiday.
Meanwhile Brexit remains in the headlines with a group of MPs and government officials meeting over the next few days to discuss alternative arrangements to the Irish backstop.The jury remains fully out on which way the cards will fall as the clock ticks down to the 29 March deadline. Data risk today comes in the form of Construction PMI at 09.30 GMT following the weaker Production PMI on Friday.
GBPUSD has been trading tightly in Asia after Friday's post-data fall and duly found support again at 1.3050 but holding 1.3100 on the bounce.EURGBP has been tightly bound as both GBP and EUR trade in their own small ranges.
I remain GBP bearish overall.New month maybe but no change as far as I'm concerned right now.
EURUSD has also been in a tight range but found some demand again ahead of support at 1.1420 while USDJPY has caught a bid on better risk sentiment and firmer Greenback and been up to 109.91 after holding 108.80 on Friday and 109.30 in Asia. Sellers building still at 110.00 with large option interest rolling off there today too.USDCHF remains underpinned with EURUSD still fragile and EURCHF finding dip demand.
AUDUSD is still on the back foot after its 0.7300 failure and with the RBA in focus with their latest interest rate decision tonight.USDCAD has remained on the back foot and posted Friday lows of 1.3069 before bouncing to 1.3107 and that area has been tested a few times in Asia too.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
The less said about the inconsistent/clueless Shrimpers and England's cricketers the better. Grrrrrrrr!
I wish you a good week one and all.
Interbank Rate 08.16 GMT